2025-2026 Regular Session SB 756 PN 0796 Bill Text (HTM)

PRINTER'S NO. 796

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

756

Session of

2025

INTRODUCED BY GEBHARD, K. WARD, PITTMAN, BROWN AND LAUGHLIN,

MAY 13, 2025

REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,

MAY 13, 2025

AN ACT

Amending Titles 4 (Amusements), 18 (Crimes and Offenses) and 42

(Judiciary and Judicial Procedure) of the Pennsylvania

Consolidated Statutes, in fantasy contests, further providing

for definitions, for general and specific powers of board and

for prohibitions; in general provisions relating to gaming,

further providing for legislative intent and for definitions;

in Pennsylvania Gaming Control Board, further providing for

Pennsylvania Gaming Control Board established, for general

and specific powers, for license or permit application

hearing process and public input hearings, for regulatory

authority of board, for number of slot machines, for reports

of board and for license or permit prohibition; in licensees,

further providing for Category 4 slot machine license, for

divestiture of disqualifying applicant, for manufacturer

licenses, for gaming service provider, for nongaming service

provider, for occupation permit application, for slot machine

testing and certification standards, for slot machine

accounting controls and audits and for renewals; in table

games, further providing for regulatory authority and for

table game device and associated equipment testing and

certification standards; in interactive gaming, further

providing for internal, administrative and accounting

controls, for interactive games and interactive gaming

devices and associated equipment testing and certification

standards; in sports wagering, further providing for

definitions; in revenues, further providing for slot machine

licensee deposits and for transfers from State Gaming Fund;

in administration and enforcement, repealing provisions

relating to political influence, further providing for

investigations and enforcement, for prohibited acts and

penalties and for liquor licenses at licensed facilities; in

fingerprinting, further providing for submission of

fingerprints and photographs; in miscellaneous provisions

relating to gaming, providing for live-streaming on casino

floor and further providing for severability; in general

provisions relating to video gaming, further providing for

definitions; in administration, further providing for powers

of board; in application and licensure, further providing for

key employee licenses, for establishment licenses and for

license or permit prohibition; in operation, further

providing for video gaming limitations and for compulsive and

problem gambling; in enforcement, further providing for

prohibited acts and penalties; in revenues, further providing

for fees; in ethics, repealing provisions relating to

political influence; providing for skill gaming; establishing

the Skill Gaming Fund; imposing duties on the Department of

Revenue; in riot, disorderly conduct and related offenses,

further providing for gambling devices, gambling, etc.; in

forfeiture of assets, further providing for asset forfeiture;

making appropriations; making repeals; and making editorial

changes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The definitions of "applicant" and "fantasy

contest" in section 302 of Title 4 of the Pennsylvania

Consolidated Statutes are amended to read:

§ 302. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Applicant." A person who, on [his] the person's own behalf

or on behalf of another, is applying for [permission to engage

in any act or activity which is regulated under the provisions

of] a registration, permit, certification, license,

qualification or other credential issued by the board pursuant

to this chapter. If the applicant is a person other than an

individual, the board shall determine the associated persons

whose qualifications are necessary as a precondition to the

licensing of the applicant.

* * *

"Fantasy contest." As follows:

(1) An online fantasy or simulated game or contest,

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between participants and not a licensed operator, with an

entry fee and a prize or award in which:

(i) The precise value of all prizes or awards

offered to winning participants is established and made

known to participants [in advance of] prior to accepting

any entries into the contest and the value is not

determined by the number of participants or the amount of

any fees paid by those participants.

(i.1) The establishment of all prizes or awards do

not include the creation of a prize pool wherein the

money in the prize pool is likely to be divided between a

number of winning participants in amounts unknown until

the contest is concluded.

(i.2) The maximum number of participants allowed to

enter into the contest is clearly disclosed and subject

to limitations established by the board.

(ii) All winning outcomes [reflect the relative

knowledge and skill of participants and] are determined

only by accumulated statistical results of the

performance of individuals[, including athletes in the

case of sports events] and nothing else.

(ii.1) The winning outcomes are determined by the

number of times a participant correctly picks whether an

individual's performance exceeds or fails to exceed a

predetermined threshold or similar selection secondary to

an individual's accumulated statistical results.

(iii) No winning outcome is based on the score,

point spread or performance of a single actual team or

combination of teams or solely on a single performance of

an individual athlete or player in a single actual event.

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(2) The term does not include social fantasy contests.

* * *

Section 2. Sections 311(b)(7.1), (7.2) and (10), 326(a)(12)

(iii) and 1102(1) of Title 4 are amended to read:

§ 311. General and specific powers of board.

* * *

(b) Specific powers.--The board shall have the following

specific powers:

* * *

(7.1) To require prospective and existing employees of

the board, independent contractors of the board, applicants

and licensees to submit [to fingerprinting by] fingerprints

to the Pennsylvania State Police [or an authorized agent of

the Pennsylvania State Police]. The Pennsylvania State Police

[or authorized agent of the Pennsylvania State Police] shall

conduct a State record check and submit the fingerprints to

the Federal Bureau of Investigation for purposes or verifying

the identity of the individual and obtaining records of

criminal arrests and convictions.

(7.2) To require prospective and existing employees of

the board, independent contractors of the board, applicants

and licensees to submit photographs consistent with the

standards established by the board.

* * *

[(10) To require licensed operators, except for a

licensed operator operating season-long fantasy contests that

generate less than $250,000 in season-long fantasy contest

adjusted revenue, unless the board determines otherwise, to:

(i) contract with a certified public accountant to

conduct an annual independent audit in accordance with

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standards adopted by the American Institute of Certified

Public Accountants to verify compliance with the

provisions of this chapter and board regulations;

(ii) contract with a testing laboratory approved by

the board to annually verify compliance with the

provisions of this chapter and board regulations; and

(iii) annually submit to the board and department a

copy of the audit report required by subparagraph (i) and

submit to the board a copy of the report of the testing

laboratory required by subparagraph (ii).]

* * *

§ 326. Prohibitions.

(a) General rule.--No licensed operator may:

* * *

(12) offer a fantasy contest where:

* * *

[(iii) the winning outcome does not reflect the

relative knowledge and skill of participants;]

* * *

§ 1102. Legislative intent.

The General Assembly recognizes the following public policy

purposes and declares that the following objectives of the

Commonwealth are to be served by this part:

(1) The primary objective of this part to which all

other objectives and purposes are secondary is to protect the

public through the regulation and policing of all activities

involving gaming and practices that continue to be unlawful.

It is the intent of the General Assembly to occupy the field

of gaming in this Commonwealth and to prohibit all forms of

gaming, wagering and gambling in this Commonwealth, including

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all traditional, electronic and mobile formats, that have not

been expressly authorized by statute.

* * *

Section 3. The definitions of "applicant," "background

investigation," "cash equivalent," "conduct of gaming,"

"interactive game," "interactive gaming," "interactive gaming

operator," "interactive gaming website," "nongaming service

provider" and "slot machine" in section 1103 of Title 4 are

amended to read:

§ 1103. Definitions.

The following words and phrases when used in this part shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Applicant." [Any] A person who, on [his] the person's own

behalf or on behalf of another, is applying for [permission to

engage in any act or activity which is regulated under the

provisions of] a registration, permit, certification, license,

qualification or other credential issued by the board pursuant

to this part. In cases in which the applicant is a person other

than an individual, the Pennsylvania Gaming Control Board shall

determine the associated persons whose qualifications are

necessary as a precondition to the licensing of the applicant.

* * *

"Background investigation." A security, criminal, credit and

suitability investigation of a person as provided for in this

part. The investigation shall include the status of taxes owed

[to the United States and] to the Commonwealth and its political

subdivisions.

* * *

20250SB0756PN0796 - 6 -

"Cash equivalent." [An asset that is readily convertible to

cash, including, but not limited to, any of the following:

(1) Chips or tokens.

(2) Travelers checks.

(3) Foreign currency and coin.

(4) Certified checks, cashier's checks and money orders.

(5) Personal checks or drafts.

(6) A negotiable instrument applied against credit

extended by a certificate holder, an interactive gaming

certificate holder, an interactive gaming operator or a

financial institution.

(6.1) A prepaid access instrument.

(7) Any other instrument or representation of value that

the Pennsylvania Gaming Control Board deems a cash

equivalent.] A ticket, token, chip, card or other similar

instrument or representation of more than nominal value that

the board deems a cash equivalent in accordance with this

part.

* * *

"Conduct of gaming." The [licensed] placement, operation and

play of slot machines, table games and interactive games and

casino simulcasting under this part[, as authorized and approved

by the Pennsylvania Gaming Control Board]. The term shall

include the licensed placement, operation and play of authorized

interactive games through the use of multi-use computing devices

at a qualified airport under Subchapter B.1 of Chapter 13B

(relating to multi-use computing devices).

* * *

"Interactive game." Any [gambling] game offered through the

use of communications technology that allows a person, utilizing

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money, checks, electronic checks, electronic transfers of money,

credit cards or any other instrumentality to transmit electronic

information to assist in the placement of a bet or wager and

corresponding information related to the display of the game,

game outcomes or other similar information. The term shall not

include:

(1) A lottery game or Internet instant game as defined

in the act of August 26, 1971 (P.L.351, No.91), known as the

State Lottery Law.

(2) iLottery under Chapter 5 (relating to lottery).

(3) A nongambling game that does not otherwise require a

license under the laws of this Commonwealth.

(4) A fantasy contest under Chapter 3 (relating to

fantasy contests).

"Interactive gaming." The placing of wagers [with an

interactive gaming certificate holder or interactive gaming

operator] using a computer network of both Federal and non-

Federal interoperable packet switched data networks through

which [an interactive gaming certificate holder] a person may

offer [authorized] interactive games to [registered] players.

The term shall include the placing of wagers through the use of

a multi-use computing device.

* * *

"Interactive gaming operator." A person [licensed by the

Pennsylvania Gaming Control Board to operate interactive gaming

or an interactive gaming system on behalf of an interactive

gaming certificate holder. The term shall include a person that

has received conditional authorization under section 13B14

(relating to interactive gaming operators) for so long as such

authorization is effective] who operates or conducts interactive

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gaming.

* * *

"Interactive gaming website." The interactive gaming skin or

skins through which an interactive gaming certificate holder or

interactive gaming operator makes [authorized] interactive games

available for play.

* * *

"Nongaming service provider." A person that is not a gaming

service provider or required to be licensed as a manufacturer,

supplier, management company or gaming junket enterprise under

this part and that provides goods or services[:

(1)] to a slot machine licensee or applicant for a slot

machine license for use in the operation of a licensed

facility[; and

(2) that does not require access to the gaming floor or

a gaming-related restricted area].

* * *

"Slot machine."

(1) The term includes:

(i) Any mechanical, electrical or computerized

contrivance, terminal, machine or other device [approved

by the Pennsylvania Gaming Control Board] which, upon

insertion of a coin, bill, ticket, token or similar

object therein or upon payment of any consideration

whatsoever, including the use of any electronic payment

system except a credit card or debit card, is available

to play or operate, the play or operation of which,

whether by reason of skill or application of the element

of chance or both:

(A) May deliver or entitle the person or persons

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playing or operating the contrivance, terminal,

machine or other device to receive cash, billets,

tickets, tokens or electronic credits to be exchanged

for cash or to receive merchandise or anything of

value whatsoever, whether the payoff is made

automatically from the machine or manually.

(B) May utilize spinning reels or video displays

or both.

tokens to winning patrons.

(D) May use an electronic credit system for

receiving wagers and making payouts.

(ii) Associated equipment necessary to conduct the

operation of the contrivance, terminal, machine or other

device.

(iii) A skill slot machine, hybrid slot machine and

the devices or associated equipment necessary to conduct

the operation of a skill slot machine or hybrid slot

machine.

(iv) A slot machine used in a multistate wide-area

progressive slot machine system and devices and

associated equipment as defined by the Pennsylvania

Gaming Control Board through regulations.

(v) A multi-use computing device which is capable of

simulating, either digitally or electronically, a slot

machine.

(2) The term does not include a fantasy contest terminal

within the meaning of Chapter 3.

* * *

Section 4. Section 1201(i)(1) of Title 4 is amended to read:

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§ 1201. Pennsylvania Gaming Control Board established.

* * *

(i) Compensation.--

(1) [The Executive Board as established in the act of

April 9, 1929 (P.L.177, No.175), known as The Administrative

Code of 1929, shall establish the compensation of the

members.] Compensation for members shall be $70,000 annually.

* * *

Section 5. Section 1202(b) of Title 4 is amended by adding a

paragraph to read:

§ 1202. General and specific powers.

* * *

(b) Specific powers.--The board shall have the specific

power and duty:

* * *

(39) To annually review any required compliance reports

and eliminate reports that the board determines to be

unnecessary or duplicative.

Section 6. Sections 1202.1(c)(5), 1205(b)(2), 1207(4), (13),

(19) and (26), 1210(a)(2), 1211(d.1) and (d.3) and 1213(4)(ii)

of Title 4 are amended to read:

§ 1202.1. Code of conduct.

* * *

contained in this part, a member shall:

* * *

(5) Not hold or campaign for public office, hold an

office in any political party or political committee, [as

defined in section 1513(d) (relating to political

influence),] contribute to or solicit contributions to a

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political campaign, political party, political committee or

candidate, publicly endorse a candidate or actively

participate in a political campaign.

* * *

§ 1205. License or permit application hearing process; public

input hearings.

* * *

(b) Public input hearing requirement.--

* * *

[(2) All public input hearings under paragraph (1) shall

be held in the municipality where the licensed facility will

be, or is, located and shall be organized in cooperation with

the municipality.]

* * *

§ 1207. Regulatory authority of board.

The board shall have the power and its duties shall be to:

* * *

(4) Require that each licensed entity provide to the

board its audited annual financial statements, with such

additional detail as the board from time to time shall

require, which information shall be submitted not later than

[90] 180 days after the end of the licensee's fiscal year.

* * *

[(13) Require slot machine licensees to provide onsite

facilities for use by the board and other appropriate persons

for the purpose of carrying out their respective

responsibilities under this part.]

* * *

(19) Authorize an employee of the board to approve, deny

or condition a request to decrease the number of slot

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machines in operation at a licensed facility. An employee may

not approve a requested decrease in the number of slot

machines under this paragraph if the requested decrease

exceeds 2% of the total number of slot machines in operation

at a licensed facility. [Except as provided under paragraph

(20), at no time shall the number of slot machines in

operation at a Category 1 or Category 2 licensed facility be

less than 1,500 or less than 250 slot machines at a Category

3 licensed facility.]

* * *

(26) Negotiate and enter into interactive gaming

reciprocal agreements on behalf of the Commonwealth to govern

the conduct of interactive gaming between interactive gaming

certificate holders in this Commonwealth and gaming entities

in other states or jurisdictions. Notwithstanding any

provision of this part, wagers may be accepted in accordance

with this part and regulations of the board from persons in

other states or jurisdictions and wagers from persons in this

Commonwealth may be made through an interactive gaming

platform to a state or jurisdiction with which the

Commonwealth has an interactive gaming reciprocal agreement

if the board determines that such wagering is not

inconsistent with Federal law or the law of the state or

jurisdiction in which the person or gaming entity is located,

or such wagering is conducted pursuant to an interactive

gaming reciprocal agreement to which this Commonwealth is a

party that is not inconsistent with Federal law. The board[,

with the approval of the Governor,] is hereby designated as

the agency of the Commonwealth with the power and authority

to enter into interactive gaming reciprocal agreements with

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other states or jurisdictions.

* * *

§ 1210. Number of slot machines.

(a) Initial complement.--Except as provided for Category 3

slot machine licensees under section 1305 (relating to Category

3 slot machine license) or a Category 4 slot machine licensee

under section 1305.1 (relating to Category 4 slot machine

license), the following apply:

* * *

[(2) Each slot machine licensee shall be required to

operate and make available to play a minimum of 1,500 slot

machines at its licensed facility within one year of the

issuance by the board of a slot machine license to the slot

machine licensee. The board, upon application and for good

cause shown, may grant an extension for an additional period

ending on the later of 36 months from the end of the initial

one-year period or December 31, 2012.]

* * *

§ 1211. Reports of board.

* * *

(d.1) Impact of interactive gaming.--

[(1)] Commencing one year after the issuance of the

first interactive gaming certificate and continuing annually

thereafter, the Department of Drug and Alcohol Programs or

successor agency shall prepare and distribute a report to the

Governor and the standing committees of the General Assembly

with jurisdiction over the board on the impact of interactive

gaming on compulsive and problem gambling and gambling

addiction in this Commonwealth. The report shall be prepared

by a private organization or entity with expertise in serving

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and treating the needs of persons with compulsive gambling

addictions, which organization or entity shall be selected by

the Department of Drug and Alcohol Programs or successor

agency. The report may be prepared and distributed in

coordination with the board. Any costs associated with the

preparation and distribution of the report shall be borne by

all interactive gaming certificate holders. The board shall

be authorized to assess a fee against each interactive gaming

certificate holder for these purposes.

[(2) Commencing one year after the issuance of the first

interactive gaming certificate and continuing annually

thereafter, the board shall prepare and distribute a report

to the Governor and the standing committees of the General

Assembly with the jurisdiction over the board on the impact

of interactive gaming on licensed gaming entities in this

Commonwealth.]

* * *

[(d.3) Study.--The board shall study and annually report to

the standing committees of the General Assembly with

jurisdiction over the board on developments in gaming technology

and the impact, if any, new technologies and expansion of gaming

are having or are expected to have on the sustainability and

competitiveness of the gaming industry in this Commonwealth. The

initial report shall be due one year after the effective date of

this subsection. Each report shall specifically address the

following:

(1) Awareness and growth, to the extent known, of any

unregulated commercial gaming products, such as e-Sports and

other such digital-based computer or video technology.

(2) New gaming products, if any, which have been

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introduced in other states or jurisdictions.

(3) Any gaming products which the board may authorize

pursuant to its regulatory authority under this part.

(4) Any legislative or administrative concerns regarding

traditional, new or emerging gaming technologies with

recommendations regarding resolution of such concerns.

(5) Any cannibalization from Category 4 slot machine

licensees on Category 1, Category 2 or Category 3 slot

machine licensees.]

* * *

§ 1213. License or permit prohibition.

The following apply:

* * *

(4) For purposes of this section, a felony offense is

any of the following:

* * *

(ii) An offense which, under the laws of another

jurisdiction, is[:

(A) classified as a felony; or

(B)] punishable by imprisonment for more than

five years.

* * *

Section 7. Section 1305.1(d) of Title 4 is amended and the

section is amended by adding a subsection to read:

§ 1305.1. Category 4 slot machine license.

* * *

(d) Number of slot machines.--The following apply:

(1) [Subject to paragraphs (2) and (3), a] A Category 4

slot machine licensee may operate not fewer than 300 and not

more than [750] 1,000 slot machines at the Category 4

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licensed facility.

[(2) A Category 1 or Category 2 slot machine licensee

who is a Category 4 slot machine licensee may not operate

slot machines above the authorized complement under section

1210 (relating to number of slot machines).

(3) (i) A Category 3 slot machine licensee who is a

Category 4 slot machine licensee may submit a petition to

operate slot machines above the Category 3 authorized

complement under section 1305 (relating to Category 3

slot machine license).

(ii) No later than 60 days after the board approves

a petition to operate slot machines above the Category 3

authorized complement in accordance with subparagraph

(i), the Category 3 slot machine licensee shall pay a

nonrefundable authorization fee in the amount of $10,000

per authorized additional slot machine.

(iii) A qualified entity who is a Category 4 slot

machine licensee shall submit to the board a petition to

operate slot machines not to exceed the limit under

paragraph (1). No later than 60 days after the board

approves a petition to operate slot machines at a

Category 4 licensed facility, the qualified entity must

pay a nonrefundable authorization fee in the amount of

$10,000 per authorized slot machine.

(4) A slot machine licensee may not reduce the number of

slot machines and table games in operation at a Category 1,

Category 2 or Category 3 licensed facility, as of the

effective date of this section, unless the board approves of

a reduction and the reduction is not a result of the conduct

of gaming at a Category 4 licensed facility.]

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(5) A Category 4 slot machine licensee may submit to the

board a petition to operate additional slot machines not to

exceed the limit under paragraph (1). No later than 60 days

after the board approves a petition to operate additional

slot machines at a Category 4 licensed facility, the slot

machine licensee must pay a nonrefundable authorization fee

in the amount of $10,000 per authorized slot machine.

* * *

(h) Remote video surveillance.--A Category 4 licensed

facility that is also a Category 1, Category 2 or Category 3

licensed facility may utilize remote video surveillance of slot

machines located at the Category 4 licensed facility by

surveillance located at the Category 1, Category 2 or Category 3

licensed facility.

Section 8. Sections 1312 and 1317.1(b)(1) of Title 4 are

amended to read:

§ 1312. Divestiture of disqualifying applicant.

In the event that any [slot machine] license application is

not approved by the board based on a finding that an individual

who is a principal or has an interest in the person applying for

the license does not meet the character requirements [of section

1310 (relating to slot machine license application character

requirements)] under this part or any of the eligibility

requirements under this part, or a person who purchases a

controlling interest in a licensed gaming entity in violation of

section 1328 (relating to change in ownership or control of slot

machine licensee), the board may afford the individual the

opportunity to completely divest his interest in the person, its

affiliate, intermediary, subsidiary or holding company seeking

the license and, after such divestiture, reconsider the person's

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or applicant's suitability for licensure in an expedited

proceeding and may, after such proceeding, issue the person or

applicant a [slot machine] license. The board shall approve the

terms and conditions of any divestiture under this section.

Under no circumstances shall any divestiture be approved by the

board if the compensation for the divested interest exceeds the

cost of the interest.

§ 1317.1. Manufacturer licenses.

* * *

(b) Requirements.--An application for a manufacturer license

shall be on the form required by the board, accompanied by the

application fee, and shall include all of the following:

(1) The name and business address of the applicant and

the applicant's affiliates, intermediaries, subsidiaries and

holding companies; the principals and key employees of each

business; and a list of employees and their positions within

each business, as well as any financial information from the

most recent tax year as required by the board.

* * *

Section 9. Section 1317.2(a) of Title 4 is amended and the

section is amended by adding a subsection to read:

§ 1317.2. Gaming service provider.

[(a) Development of classification system.--The board shall

develop a classification system governing the certification,

registration and regulation of gaming service providers and

individuals and entities associated with them. The

classification system shall be based upon the following:

(1) The monetary value or amount of business conducted

or expected to be conducted by the gaming service provider

with an applicant for a slot machine license or a slot

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machine licensee in any consecutive 12-month period.

(2) Whether the employees of the gaming service provider

will have access to the gaming floor or any gaming-related

restricted area of a licensed facility.

(3) The board's analysis of the goods or services

provided or to be provided by the gaming service provider.]

(a.1) Slot machine licensee thresholds.--

(1) A slot machine licensee that contracts with or

otherwise engages in business with a gaming service provider

in an aggregate amount that is less than $50,000 in any

consecutive 12-month period shall provide notification to the

board prior to the gaming service provider's provision of

goods or services.

(2) A slot machine licensee that contracts with or

otherwise engages in business with a gaming service provider

in an aggregate amount that is between $50,001 and $250,000

in any consecutive 12-month period shall ensure that the

gaming service provider is registered with the board prior to

the gaming service provider's provision of goods or services.

(3) A slot machine licensee that contracts with or

otherwise engages in business with a gaming service provider

in an aggregate amount that is between $250,001 and $750,000

in any consecutive 12-month period shall ensure that the

gaming service provider has obtained a certificate from the

board prior to the gaming service provider's provision of

goods or services.

(4) The thresholds under paragraphs (1), (2) and (3)

shall be adjusted annually by the board by applying the

percentage change in the Consumer Price Index for All Urban

Consumers (CPI-U) for the Pennsylvania, New Jersey, Delaware

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and Maryland area for the most recent 12-month period for

which figures have been officially reported by the United

States Department of Labor, Bureau of Labor Statistics,

immediately prior to the date the adjustment is due to take

effect.

* * *

Section 10. Section 1317.3(a) and (d)(3) and (4) of Title 4

are amended to read:

§ 1317.3. Nongaming service provider.

(a) Notification required.--

(1) A slot machine licensee or applicant for a slot

machine license that contracts with or otherwise engages in

business in an aggregate amount that exceeds $500,000 in any

consecutive 12-month period with a nongaming service provider

shall provide notification to the board prior to[:

(i)] the nongaming service provider's provision of

goods or services. [at the slot machine licensee's

licensed facility; or

(ii) the provision of goods or services for use in

the operation of the slot machine licensee's licensed

facility.

(2) Notification under this section shall be on a form

and in a manner as determined by the board. The board may

impose a fee, not to exceed $100, in connection with the

notification.]

(3) The threshold under paragraph (1) shall be adjusted

annually by the board by applying the percentage change in

the Consumer Price Index for All Urban Consumers (CPI-U) for

the Pennsylvania, New Jersey, Delaware and Maryland area for

the most recent 12-month period for which figures have been

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officially reported by the United States Department of Labor,

Bureau of Labor Statistics, immediately prior to the date the

adjustment is due to take effect.

* * *

(d) Conditions.--A slot machine licensee or applicant for a

slot machine license that contracts or otherwise engages in

business with a nongaming service provider shall be subject to

the following conditions:

* * *

[(3) The slot machine licensee or applicant for a slot

machine license shall ensure that employees of the nongaming

service provider do not enter the gaming floor or a gaming-

related restricted area while providing the goods or services

described in subsection (b)(2).

(4) The slot machine licensee or applicant for a slot

machine license shall report to the board an employee of a

nongaming service provider that does any of the following:

(i) Enters the gaming floor or a gaming-related

restricted area of the licensed facility.

(ii) Commits an act that adversely affects the

public interest or integrity of gaming.]

* * *

Section 11. Section 1318(a) and (b)(3) of Title 4 are

amended and the section is amended by adding a subsection to

read:

§ 1318. Occupation permit application.

(a) Application.--Any person who desires to be a gaming

employee and has a bona fide offer of employment from a licensed

gaming entity shall apply to the board for an occupation permit.

The board, in the board's discretion, may issue a temporary

20250SB0756PN0796 - 22 -

occupation permit after the submission of an application that

allows a person to be employed as a gaming employee before the

issuance of the person's occupation permit. A person may not be

employed as a gaming employee unless and until that person holds

an appropriate occupation permit or temporary occupation permit

issued under this section. [The board may promulgate regulations

to reclassify a category of nongaming employees or gaming

employees upon a finding that the reclassification is in the

public interest and consistent with the objectives of this

part.]

(b) Requirements.--The application for an occupation permit

shall include, at a minimum:

* * *

(3) The criminal history record of the person, as well

as the person's consent for the Pennsylvania State Police to

conduct a [background investigation.] criminal history record

information check provided by the Pennsylvania Access to

Criminal History system.

* * *

(d) Nongaming position.-- An applicant for a position

categorized as nongaming shall not be required to obtain an

occupation permit.

Section 12. Section 1320(b.1)(8) of Title 4 is amended and

the subsection is amended by adding a paragraph to read:

§ 1320. Slot machine testing and certification standards.

* * *

(b.1) Use of private testing and certification facilities.--

Notwithstanding any other provisions of this part or regulation

of the board, if a slot machine is tested and certified by a

private testing and certification facility registered with the

20250SB0756PN0796 - 23 -

board, the board shall use an abbreviated certification process

requiring only that information determined by it to be necessary

to consider the issuance of a slot machine certification under

this section. Within one year of the effective date of this

subsection, the board shall promulgate regulations that:

* * *

[(8) Require slot machines submitted for abbreviated

certification to be approved or denied by the board within 30

days from the date of submission to the board. If the board

fails to act within the 30-day period, the abbreviated

certification shall be deemed conditionally approved.]

(8.1) Require that if a slot machine has been approved

by another state gaming regulator that has offered slot

machines in that state for at least 10 years, upon filing,

the slot machine shall be conditionally approved and, after

90 days, shall be deemed finally approved with the licensee

holding the board harmless for any resulting liability.

* * *

Section 13. Sections 1322(c) introductory paragraph, 1325(d)

(3), 1326(a) and 13A02(1) of Title 4 are amended to read:

§ 1322. Slot machine accounting controls and audits.

* * *

shall submit to the board and department, in such manner as the

board shall require, a description of its administrative and

accounting procedures in detail, including its written system of

internal control that shall be deemed approved upon filing

subject to modifications requested by the board. Each written

system of internal control shall include:

* * *

20250SB0756PN0796 - 24 -

§ 1325. License or permit issuance.

* * *

(d) Trusts and similar business entities.--The board shall

determine the eligibility of a trust or similar business entity

to be a licensed entity in accordance with the following:

* * *

(3) No trust or similar business entity may hold any

beneficial interest in a licensed entity unless the board

determines that the trust or similar business entity is not

engaged in any activity or otherwise being used to evade the

public protections under this part, including [sections]

section 1512 (relating to financial and employment interests)

[and 1513 (relating to political influence)].

§ 1326. Renewals.

(a) Renewal.--All permits, licenses, registrations or

certificates issued under this part unless otherwise provided

shall be subject to renewal every five years. Nothing in this

subsection shall relieve a licensee, permittee or holder of a

certificate or registration of the affirmative duty to notify

the board of any changes relating to the status of its license,

permit, certificate or registration or to any other information

contained in the application materials on file with the board.

The application for renewal shall be submitted at least [180] 60

days prior to the expiration of the permit, license,

registration or certificate and shall include an update of the

information contained in the initial and any prior renewal

applications and the payment of any renewal fee required by this

part. Unless otherwise specifically provided in this part, the

amount of any renewal fee shall be calculated by the board to

reflect the longer renewal period. A permit, license,

20250SB0756PN0796 - 25 -

registration or certificate for which a completed renewal

application and fee, if required, has been received by the board

will continue in effect unless and until the board sends written

notification to the holder of the permit, license, registration

or certificate that the board has denied the renewal of such

permit, license, registration or certificate.

* * *

§ 13A02. Regulatory authority.

The board shall promulgate regulations:

(1) Establishing standards and procedures for table

games and table game devices or associated equipment,

including standards distinguishing electronic gaming tables,

fully automated electronic gaming tables and traditional

gaming tables. The standards and procedures shall provide for

any new table games or gaming tables and variations or

composites of approved table games or gaming tables, provided

the board determines that the new table game, gaming table or

any variations or composites or other approved table games or

gaming tables are suitable for use after a test or

experimental period under the terms and conditions as the

board may deem appropriate. Unless the board determines that

the submission contains a technical defect, a new table game,

including rules of the table game, shall be deemed

conditionally approved by the board upon submission if the

new table game or rules have been approved by any other state

gaming regulator within the United States that has offered

table games for at least 10 years. If the board fails to

issue an order approving or denying the new table game or

rules within 90 days of submission, the new table game or

rules shall be deemed finally approved by operation of law. A

20250SB0756PN0796 - 26 -

licensee seeking board approval of a new table game or rules

shall hold the board harmless from any liability arising from

the play of the new table game or rules prior to final

approval.

* * *

Section 14. Section 13A41(b.1)(8) of Title 4 is amended and

the subsection is amended by adding a paragraph to read:

§ 13A41. Table game device and associated equipment testing and

certification standards.

* * *

(b.1) Use of private testing and certification facilities.--

Notwithstanding any provision of this part or regulation of the

board, if a table game device or associated equipment is tested

and certified by a private testing and certification facility

registered with the board, the board shall use an abbreviated

certification process requiring only that information determined

by it to be necessary to consider the issuance of a table game

device or associated equipment certification under this section.

Within one year of the effective date of this subsection, the

board shall promulgate regulations that:

* * *

[(8) Require table game devices and associated equipment

submitted for abbreviated certification to be approved or

denied by the board within 30 days from the date of

submission to the board. If the board fails to act within the

30-day period, the abbreviated certification shall be deemed

conditionally approved.]

(8.1) Require that if a table game has been approved by

another state gaming regulator that has offered table games

in that state for at least 10 years, upon filing, the table

20250SB0756PN0796 - 27 -

game shall be conditionally approved and, after 90 days,

shall be deemed finally approved with the licensee holding

the board harmless for any resulting liability.

* * *

Section 15. Sections 13B32(b)(4) and 13B41 heading and (a)

(1) of Title 4 are amended to read:

§ 13B32. Internal, administrative and accounting controls.

* * *

(b) Filing.--Notwithstanding subsection (a), the procedures

and controls may be implemented by an interactive gaming

certificate holder upon the filing of the procedures and

controls with the board. Each procedure or control submission

shall contain both narrative and diagrammatic representations of

the system to be utilized and shall include but need not be

limited to:

* * *

(4) Procedures for the registration of players and

establishment of interactive gaming accounts to prevent fraud

and to assure the identity of the account holder, including a

procedure for authenticating the age, identity and physical

address of an applicant for an interactive gaming account and

whether the applicant is a person prohibited from

establishing or maintaining an account under section 13B22

(relating to establishment of interactive gaming accounts).

* * *

§ 13B41. Interactive skill games, interactive games and

interactive gaming devices and associated equipment

testing and certification standards.

(a) Testing required.--

(1) No interactive skill game, interactive game or

20250SB0756PN0796 - 28 -

interactive gaming device or associated equipment shall be

used to conduct interactive gaming unless it has been tested

and certified by the board. The board may, in its discretion

and for the purpose of expediting the approval process, refer

testing to any testing laboratory as approved by the board.

* * *

Section 16. The definition of "sporting event" in section

13C01 of Title 4 is amended and the section is amended by adding

a definition to read:

§ 13C01. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"E-Sports event." An organized competition in which players

compete against each other, individually or as teams, in the

play of video games, and the outcome of the game is determined

predominantly by the skill of the player not the element of

chance.

* * *

"Sporting event." A professional or collegiate sports or

athletic event [or], a motor race event or an e-Sports event.

* * *

Section 17. Sections 1401(b) and (d) and 1408(c) of Title 4

are amended to read:

§ 1401. Slot machine licensee deposits.

* * *

[(b) Initial deposit of funds.--Not later than two business

days prior to the commencement of slot machine operations by a

slot machine licensee, a slot machine licensee shall deposit and

maintain the following sums in its account to guarantee the

20250SB0756PN0796 - 29 -

payment of funds to the Commonwealth under this part and as

security for its obligations under section 1405 (relating to

Pennsylvania Race Horse Development Trust Fund):

(1) For a Category 1 or Category 2 slot machine

licensee, $1,500,000.

(2) For a Category 3 slot machine licensee, $1,000,000.

(3) For a Category 4 slot machine licensee, $1,250,000.

No additional minimum deposit shall be required from a slot

machine licensee if a slot machine licensee is granted a table

game operation certificate under Chapter 13A (relating to table

games).]

* * *

[(d) Return of funds.--The funds deposited into its account

shall not be returned to a slot machine licensee unless the slot

machine licensee ceases conducting business under its license

and relinquishes all rights to do so in the future. In that

case, the balance of funds in the account attributable to such

licensee, minus any unpaid amounts due and payable to the

Commonwealth under this part or due and payable under section

1405, shall be returned to the licensee.]

§ 1408. Transfers from State Gaming Fund.

* * *

(1) Except as provided in subsection (c.1), annually,

the sum of $2,000,000 shall be transferred to the board for

the purpose of issuing grants to local law enforcement

agencies to investigate violations of and enforce laws

relating to unlawful gambling in this Commonwealth.

(2) Grants awarded under this subsection may also be

used by local law enforcement agencies for:

20250SB0756PN0796 - 30 -

(i) Enforcement of criminal laws related to

gambling, including, but not limited to, related thefts,

unattended children and harassment.

(ii) Educational, prevention and diversion programs

related to unlawful gambling and crimes related to

gambling.

(3) For purposes of this subsection, the term "local law

enforcement agency" shall include the Pennsylvania State

Police when conducting unlawful gambling enforcement and

prevention activities in a municipality which does not have a

municipal police department and in which the Pennsylvania

State Police provide the municipality with primary police

coverage.

* * *

Section 18. Section 1513 of Title 4 is repealed:

[§ 1513. Political influence.

(a) Contribution restriction.--The following persons shall

be prohibited from contributing any money or in-kind

contribution to a candidate for nomination or election to any

public office in this Commonwealth, or to any political party

committee or other political committee in this Commonwealth or

to any group, committee or association organized in support of a

candidate, political party committee or other political

committee in this Commonwealth:

(1) An applicant for a slot machine license,

manufacturer license, supplier license, principal license,

key employee license, interactive gaming license or horse or

harness racing license.

(2) A slot machine licensee, licensed manufacturer,

licensed supplier, interactive gaming operator or licensed

20250SB0756PN0796 - 31 -

racing entity.

(3) A licensed principal or licensed key employee of a

slot machine licensee, licensed manufacturer, licensed

supplier, interactive gaming operator or licensed racing

entity.

(4) An affiliate, intermediary, subsidiary or holding

company of a slot machine licensee, licensed manufacturer,

licensed supplier, interactive gaming operator or licensed

racing entity.

(5) A licensed principal or licensed key employee of an

affiliate, intermediary, subsidiary or holding company of a

slot machine licensee, licensed manufacturer, licensed

supplier, interactive gaming operator or licensed racing

entity.

(6) A person who holds a similar gaming license in

another jurisdiction and the affiliates, intermediaries,

subsidiaries, holding companies, principals or key employees

thereof.

(a.1) Contributions to certain associations and

organizations barred.--The individuals prohibited from making

political contributions under subsection (a) shall not make a

political contribution of money or an in-kind contribution to

any association or organization, including a nonprofit

organization, that has been solicited by, or knowing that the

contribution or a portion thereof will be contributed to, the

elected official, executive-level public employee or candidate

for nomination or election to a public office in this

Commonwealth.

(a.2) Internet website.--

(1) The board shall establish an Internet website that

20250SB0756PN0796 - 32 -

includes a list of all applicants for and holders of a slot

machine license, manufacturer license, supplier license or

racing entity license, and the affiliates, intermediaries,

subsidiaries, holding companies, principals and key employees

thereof, all persons holding a similar gaming license in

another jurisdiction, and the affiliates, intermediaries,

subsidiaries, holding companies, principals and key employees

thereof, and any other entity in which the applicant or

licensee has any debt or equity security or other ownership

or profits interest. An applicant or licensee shall notify

the board within seven days of the discovery of any change in

or addition to the information. The list shall be published

semiannually in the Pennsylvania Bulletin.

(2) An individual who acts in good faith and in reliance

on the information on the Internet website shall not be

subject to any penalties or liability imposed for a violation

of this section.

(3) The board shall request the information required

under paragraph (1) from persons licensed in another

jurisdiction who do not hold a license in this Commonwealth

and from regulatory agencies in the other jurisdiction. If a

licensee in another jurisdiction refuses to provide the

information required under paragraph (1), the person and its

officers, directors or persons with a controlling interest

shall be ineligible to receive any license under this part.

(b) Annual certification.--The chief executive officer, or

other appropriate individual, of each applicant for a slot

machine license, manufacturer license or supplier license,

licensed racing entity, licensed supplier, licensed manufacturer

or licensed gaming entity shall annually certify under oath to

20250SB0756PN0796 - 33 -

the board and the Department of State that such applicant or

licensed racing entity, licensed supplier, licensed manufacturer

or licensed gaming entity has developed and implemented internal

safeguards and policies intended to prevent a violation of this

provision and that such applicant or licensed racing entity or

licensed gaming entity has conducted a good faith investigation

that has not revealed any violation of this provision during the

past year.

(1) The first violation of this section by a licensed

gaming entity or any person that holds a controlling interest

in such gaming entity, or a subsidiary company thereof, or

any officer, director or management-level employee of such

licensee shall be punishable by a fine equal to an amount not

less than the average single day's gross terminal revenue and

gross table game revenue of the licensed gaming entity; a

second violation of this section, within five years of the

first violation, shall be punishable by at least a one-day

suspension of the license held by the licensed gaming entity

and a fine equal to an amount not less than two times the

average single day's gross terminal revenue and gross table

game revenue of the licensed gaming entity; a third violation

of this section within five years of the second violation

shall be punishable by the immediate revocation of the

license held by the licensed gaming entity. Following

revocation, the board shall consider appointing a trustee in

accordance with section 1332 (relating to appointment of

trustee).

(2) The first violation of this section by a

manufacturer or supplier licensed pursuant to this part or by

20250SB0756PN0796 - 34 -

any person that holds a controlling interest in such

manufacturer or supplier, or a subsidiary company thereof, or

any officer, director or management-level employee of such a

licensee shall be punishable by a fine equal to an amount not

less than a single day's average of the gross profit from

sales made by the manufacturer or supplier in Pennsylvania

during the preceding 12-month period or portion thereof in

the event the manufacturer or supplier has not operated in

Pennsylvania for 12 months; a subsequent violation of this

section within five years of a prior violation shall be

punishable by a one-month suspension of the license held by

the manufacturer or supplier and a fine equal to an amount

not less than two times a single day's average of the gross

profit from sales made by the manufacturer or supplier in

Pennsylvania during the preceding 12-month period or portion

thereof in the event the manufacturer or supplier has not

operated in Pennsylvania for 12 months.

(3) In no event shall the fine imposed under this

section be an amount less than $100,000 for each violation.

In addition to any fine or sanction that may be imposed by

the board under this subsection, any individual who makes a

contribution in violation of this section commits a

misdemeanor of the third degree.

(d) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection:

"Contribution." Any payment, gift, subscription, assessment,

contract, payment for services, dues, loan, forbearance, advance

or deposit of money or any valuable thing made to a candidate or

political committee for the purpose of influencing any election

20250SB0756PN0796 - 35 -

in this Commonwealth or for paying debts incurred by or for a

candidate or committee before or after any election. The term

shall include the purchase of tickets for events including

dinners, luncheons, rallies and other fundraising events; the

granting of discounts or rebates not available to the general

public; or the granting of discounts or rebates by television

and radio stations and newspapers not extended on an equal basis

to all candidates for the same office; and any payments provided

for the benefit of any candidate, including payments for the

services of a person serving as an agent of a candidate or

committee by a person other than the candidate or committee or

person whose expenditures the candidate or committee must

report. The term also includes any receipt or use of anything of

value received by a political committee from another political

committee and also includes any return on investments by a

political committee.

"Political committee." Any committee, club, association or

other group of persons which receives contributions or makes

expenditures.]

Section 19. Section 1517(a.2)(1)(iii) and (c)(13) and (14)

of Title 4 are amended to read:

§ 1517. Investigations and enforcement.

* * *

(a.2) Office of Enforcement Counsel.--

(1) There is established within the bureau an Office of

Enforcement Counsel which shall act as the prosecutor in all

noncriminal enforcement actions initiated by the bureau under

this part and shall have the following powers and duties:

* * *

(iii) Initiate, in its sole discretion, proceedings

20250SB0756PN0796 - 36 -

for noncriminal violations of this part by filing a

complaint or other pleading with the board. A complaint

or pleading for noncriminal violations of this part shall

be commenced within one year of either the occurrence of

the violation or of the board's discovery of a violation.

* * *

Pennsylvania State Police shall have the following powers and

duties:

* * *

[(13) A member of the Pennsylvania State Police assigned

to duties of enforcement under this part shall not be counted

toward the complement as defined in the act of December 13,

2001 (P.L.903, No.100), entitled "An act repealing in part a

limitation on the complement of the Pennsylvania State

Police."]

[(14) By March 1 of each year, the Commissioner of the

Pennsylvania State Police shall submit a report to the

Appropriations Committee of the Senate, the Community,

Economic and Recreational Development Committee of the

Senate, the Appropriations Committee of the House of

Representatives and the Gaming Oversight Committee of the

House of Representatives. The report shall summarize all law

enforcement activities at each licensed facility during the

previous calendar year and shall include all of the

following:

(i) The number of arrests made and citations issued

at each licensed facility and the name of the law

enforcement agency making the arrest or issuing the

citation.

20250SB0756PN0796 - 37 -

(ii) A list of specific offenses charged for each

arrest made or citation issued.

(iii) The number of criminal prosecutions resulting

from arrests made or citations issued.

(iv) The number of convictions resulting from

prosecutions reported under subparagraph (iii).

(v) The number of Pennsylvania State Police troopers

assigned to each licensed facility and to the gaming unit

at the Pennsylvania State Police headquarters.

(vi) The number and the subject matter of complaints

made against Pennsylvania State Police troopers in

licensed facilities and the type of disciplinary actions

taken by the Pennsylvania State Police, if any, against

the Pennsylvania State Police troopers.

(vii) The closest local police station, Pennsylvania

State Police station and regional Pennsylvania State

Police headquarters to each licensed facility.]

* * *

Section 20. Section 1518(c)(1)(vi) of Title 4 is amended and

the subsection is amended by adding paragraphs to read:

§ 1518. Prohibited acts; penalties.

* * *

(1) In addition to any other penalty authorized by law,

the board may impose without limitation the following

sanctions upon any licensee or permittee:

* * *

(vi) Assess administrative penalties as necessary to

punish misconduct and to deter future violations[.],

which may include fines which shall not exceed $1,000 for

20250SB0756PN0796 - 38 -

a first violation, $5,000 for a second violation

occurring within one year of the first violation and

$10,000 for subsequent violations occurring within one

year of the first violation.

* * *

(1.1) A licensee shall not be liable:

(i) If the violation is not found to be willful and

the licensee acted in accordance with board-approved

internal controls.

(ii) For a violation committed by another entity

that holds a license under this part and the licensee

charged with the violation neither knew nor should have

known about the conduct at issue.

(1.2) If a licensee establishes any of the affirmative

defenses under paragraph (1.1), the board's sole remedy

against the licensee shall be to require the licensee to

correct any internal controls discovered to be inadequate as

a result of the violation.

* * *

Section 21. Sections 1521(b.1) and 1802 of Title 4 are

amended to read:

§ 1521. Liquor licenses at licensed facilities.

* * *

(b.1) Liquor Code sanctions.--[Notwithstanding any other

provision of law, a] A person holding a slot machine license

that also holds a license issued by the Pennsylvania Liquor

Control Board shall not be subject to the provisions of section

471(c) of the Liquor Code. [In addition, if a fine is imposed

under section 471(b) of the Liquor Code, it shall be for not

less than $250 nor more than $25,000. The prior citation history

20250SB0756PN0796 - 39 -

of the slot machine licensee shall be considered in determining

the amount of the fine.]

* * *

§ 1802. Submission of fingerprints and photographs.

Appointees to the board and commission, employees and

prospective employees [engaged in the service of the commissions

or the board] of the board and commission and applicants under

this part shall submit [to fingerprinting and photographing by]

fingerprints and photographs to the Pennsylvania State Police

[or by a local law enforcement agency capable of submitting

fingerprints and photographs electronically to the Pennsylvania

State Police] utilizing the [Integrated Automated Fingerprint

Identification System] Multi-Biometric Identification System and

the Commonwealth Photo Imaging Network or in a manner and in

such form as may be provided by the Pennsylvania State Police.

Fingerprinting pursuant to this part shall require, at a

minimum, the submission of a full set of fingerprints.

Photographing pursuant to this part shall require submission to

photographs of the face and any scars, marks or tattoos for

purposes of comparison utilizing an automated biometric imaging

system. The Pennsylvania State Police shall conduct a State

record check and submit fingerprints when requested by the

[commissions] commission or the board to the Federal Bureau of

Investigation for purposes of verifying the identity of the

applicants and obtaining records of criminal arrests and

convictions in order to prepare criminal history background

investigations under section 1801 (relating to duty to provide).

Fingerprints and photographs obtained pursuant to this part may

be maintained by the [commissions] commission, the board and the

Pennsylvania State Police for use pursuant to this part and for

20250SB0756PN0796 - 40 -

general law enforcement purposes. In addition to any other fee

or cost assessed by the [commissions] commission or the board,

an applicant shall pay for the cost of fingerprinting and

photographing.

Section 22. Title 4 is amended by adding a section to read:

§ 1901.4. Live streaming on casino floor.

(a) Live streaming.--A social media influencer may live

stream from a gaming floor with advance notice and approval from

the board and a licensee.

(b) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Social media influencer." An individual who endorses or

promotes a product or service through social media in exchange

for compensation.

Section 23. Section 1902(b) of Title 4 is amended to read:

§ 1902. Severability.

* * *

(b) Limitation.--If [any of] the provisions of section [1201

(relating to Pennsylvania Gaming Control Board established) or]

1209 (relating to slot machine license fee) or [their] its

application to any person or circumstance are held to be invalid

by any court, the remaining provisions of this title and its

application shall be void.

Section 24. The definitions of "applicant," "background

investigation," "establishment licensee," "gaming employee,"

"manufacturer license," "manufacturer licensee," "terminal

operator," "terminal operator licensee," "truck stop

establishment" and "video gaming terminal" in section 3102 of

Title 4 are amended and the section is amended by adding

20250SB0756PN0796 - 41 -

definitions to read:

§ 3102. Definitions.

The following words and phrases when used in this part shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Applicant." A person who, on [his] the person's own behalf

or on behalf of another, [applies for permission to engage in an

act or activity that is regulated under the provisions of this

part.] is applying for a registration, permit, certification,

license, qualification or other credential issued by the board

pursuant to this part. If an applicant is a person other than

the individual, the board shall determine the associated persons

whose qualifications are necessary as a precondition to the

licensing of the applicant.

* * *

"Background investigation." A security, criminal, credit and

suitability investigation of a person as provided for in this

part that includes the status of taxes owed to [the United

States,] the Commonwealth and its political subdivisions.

* * *

"Establishment licensee." A truck stop establishment that

holds an establishment license under this part.

* * *

"Gaming employee."

(1) Any of the following:

(i) An employee of a terminal operator licensee[,

establishment licensee] or supplier licensee [that] who

is not a key employee and is involved in the conduct of

video gaming.

20250SB0756PN0796 - 42 -

(ii) An employee of a supplier licensee whose duties

are directly involved with the repair or distribution of

video gaming terminals or associated equipment sold or

provided to a terminal operator licensee within this

Commonwealth as determined by the board.

(iii) An employee of an establishment licensee who

is designated by the establishment licensee as a gaming

manager.

(2) The term does not include nongaming personnel as

determined by the board [or an employee of an establishment

licensee].

"Gaming manager." A person designated by an establishment

licensee as being:

(1) responsible for the management, supervision and

training of other establishment licensee employees regarding

the conduct of video gaming;

(2) responsible for coordinating video gaming operations

with a terminal operator; and

(3) available to promptly address any gaming-related

issues that arise at the premises of an establishment

licensee.

* * *

"Manufacturer license." A license issued by the board under

this part authorizing a manufacturer to manufacture or produce

video gaming terminals, redemption terminals or associated

equipment for use in this Commonwealth for video gaming

purposes.

"Manufacturer licensee." A person that holds a manufacturer

license issued by the board under this part.

* * *

20250SB0756PN0796 - 43 -

"Skill gaming terminal." As defined in section 5102

(relating to definitions).

* * *

"Terminal operator." A person that holds a terminal operator

license and owns, services or maintains video gaming terminals

for placement and operation on the premises of [an establishment

licensee] a truck stop establishment licensed by the board under

this part.

* * *

"Terminal operator licensee." A person that holds a terminal

operator license issued by the board under this part.

* * *

"Truck stop establishment." A premises that:

(1) Is equipped with diesel islands used for fueling

commercial motor vehicles.

(2) Has sold on average [50,000] 10,000 gallons of

diesel or biodiesel fuel or more each month for the previous

12 months or is projected to sell an average of [50,000]

10,000 gallons of diesel or biodiesel fuel or more each month

for the next 12 months.

(3) Has at least 20 parking spaces dedicated for

commercial motor vehicles.

(4) Has a convenience store.

(5) Is situated on a parcel of land of not less than

three acres that the truck stop establishment owns or leases.

(6) Is not located on any property owned by the

Pennsylvania Turnpike.

* * *

"Video gaming terminal."

(1) A mechanical or electrical contrivance, terminal,

20250SB0756PN0796 - 44 -

machine or other device approved by the board that, upon

insertion of cash or cash equivalents, is available to play

or operate one or more gambling games, the play of which

utilizes a random number generator and:

(i) May award a winning player either a free game or

credit that shall only be redeemable for cash or cash

equivalents at a redemption terminal.

(ii) May utilize video displays.

(iii) May use an electronic credit system for

receiving wagers and making payouts that are only

redeemable at a redemption terminal.

(2) Associated equipment necessary to conduct the

operation of the contrivance, terminal, machine or other

device.

(3) The term does not include a slot machine operated at

a licensed facility in accordance with Part II (relating to

gaming), a skill gaming terminal or a coin-operated amusement

game.

(4) The term does not include "lottery" as defined under

the act of August 26, 1971 (P.L.351, No.91), known as the

State Lottery Law.

Section 25. Sections 3301(b)(8) and 3505(a) of Title 4 are

amended to read:

§ 3301. Powers of board.

* * *

(b) Specific powers.--The board shall have the power and

duty:

* * *

(8) To require prospective and existing video gaming

employees, independent contractors, applicants, permittees

20250SB0756PN0796 - 45 -

and licensees to submit [to fingerprinting by] fingerprints

to the Pennsylvania State Police [or its authorized

designee]. The Pennsylvania State Police [or its authorized

designee] shall conduct a State record check and submit the

fingerprints to the Federal Bureau of Investigation for

purposes of verifying the identity of the individual and

obtaining records of criminal arrests and convictions.

* * *

§ 3505. Key employee licenses.

(a) License required.--[All key employees] A key employee,

including a gaming manager, shall obtain a key employee license

from the board.

* * *

Section 26. Section 3514 of Title 4 is amended by adding a

subsection to read:

§ 3514. Establishment licenses.

* * *

(g) Prohibition.--A gaming manager may not be licensed as an

employee of more than one establishment licensee.

Section 27. Section 3515 of Title 4 is amended to read:

§ 3515. License or permit prohibition.

The following apply:

(1) The board shall be prohibited from granting a

license under this part to any applicant who has been

convicted of a gambling-related felony offense in any

jurisdiction. The board shall determine, in the board's sole

discretion, whether a felony offense is gambling-related.

[(2) In addition to the prohibition under paragraph (1),

the board shall be prohibited from granting the following:

(i) A principal license or key employee license to

20250SB0756PN0796 - 46 -

an individual who has been convicted in a jurisdiction of

a misdemeanor gambling offense, unless 15 years have

elapsed from the date of conviction for the offense.

(ii) A gaming employee permit or a license other

than a principal license or key employee license to an

individual who has been convicted in a jurisdiction of a

misdemeanor gambling offense, unless 15 years have

elapsed from the date of conviction for the offense.

(iii) An establishment license to an applicant who

has been convicted in a jurisdiction of a misdemeanor

gambling offense, unless 15 years have elapsed from the

date of conviction for the offense.

(3) Following the expiration of any prohibition period

applicable to an applicant under paragraph (2), in

determining whether to issue a license or permit, the board

shall consider the following factors:

(i) The nature and duties of the applicant's

position with the licensed entity.

(ii) The nature and seriousness of the offense or

conduct.

(iii) The circumstances under which the offense or

conduct occurred.

(iv) The age of the applicant when the offense or

conduct was committed.

(v) Whether the offense or conduct was an isolated

or a repeated incident.

(vi) Evidence of rehabilitation, including good

conduct in the community, counseling or psychiatric

treatment received and the recommendation of persons who

have substantial contact with the applicant.]

20250SB0756PN0796 - 47 -

(4) For purposes of this section, a felony offense is

any of the following:

(i) An offense classified as a felony or punishable

under the laws of this Commonwealth by imprisonment for

more than five years.

(ii) An offense which, under the laws of another

jurisdiction, is[:

(A) classified as a felony; or

(B)] punishable by imprisonment for more than

five years.

(iii) An offense under the laws of another

jurisdiction which, if committed in this Commonwealth,

would be subject to imprisonment for more than five

years.

Section 28. Section 3702(a)(1) and (b)(1) and (7) of Title 4

are amended, subsection (a) is amended by adding a paragraph and

the section is amended by adding a subsection to read:

§ 3702. Video gaming limitations.

(a) Establishment licensee limitations.--An establishment

licensee may offer video gaming terminals for play within its

premises, subject to the following:

(1) No more than [five] seven video gaming terminals may

be placed on the premises of the establishment licensee.

* * *

(13) An establishment licensee shall employ at least one

gaming manager. An establishment licensee shall not be

required to have a gaming manager on premises during the

conduct of video gaming at the establishment.

(b) Terminal operator licensee limitations.--A terminal

operator licensee may place and operate video gaming terminals

20250SB0756PN0796 - 48 -

on the premises of an establishment licensee, subject to the

following:

(1) No more than [five] seven video gaming terminals may

be placed on the premises of the establishment licensee.

* * *

(7) No terminal operator licensee may give an

establishment licensee a percentage of gross terminal revenue

other than [15%] 18% of the gross terminal revenue of the

video gaming terminals operating in the establishment

licensee's premises.

* * *

(1) Nothing in this part shall be construed to authorize

the placement of video gaming terminals in a county that has

prohibited the placement of video gaming terminals within the

host county in accordance with section 5706 (relating to

compulsive and problem gambling).

(2) Nothing in this part shall be construed to authorize

the placement of video gaming terminals in a municipality

that has prohibited the placement of video gaming terminals

within the municipality in accordance with 53 Pa.C.S. § 502

(relating to municipal option for gaming).

Section 29. Sections 3706(d)(1) and (3) and (e) and 3905(b)

(4) of Title 4 are amended to read:

§ 3706. Compulsive and problem gambling.

* * *

(d) Mandatory training.--

(1) The board's Office of Compulsive and Problem

Gambling, in consultation with the Department of Drug and

Alcohol Programs or successor agency, shall develop a

20250SB0756PN0796 - 49 -

mandatory training program for all employees [and management]

of an establishment licensee [who oversee the establishment

licensee's video gaming area]. The training program shall

address responsible gaming and other compulsive and problem

gambling issues related to video gaming terminals.

* * *

(3) [At least one employee of the establishment licensee

who holds a valid occupation permit and has successfully

completed the training program shall be located on the

premises and supervising the video gaming area during all

times video gaming terminals are available for play.] All

employees of an establishment licensee shall successfully

complete the training program.

(e) Penalty.--An establishment licensee that fails to

fulfill the requirements of subsection (a), (b), (c) or (d)

shall be assessed by the board an administrative penalty and may

have its establishment license suspended. When determining the

penalty and number of suspension days, the board shall consider

the length of time in which the materials were not available or

[a trained employee was not located on the premises] any

employee of an establishment licensee was employed without

completing the mandatory training as required by subsection (d)

(3).

§ 3905. Prohibited acts and penalties.

* * *

(b) Criminal penalties and fines.--

* * *

(4) An individual who commits an offense in violation of

subsection (a)(16) commits a nongambling offense to be graded

in accordance with 18 Pa.C.S. § 6308 and shall be subject to

20250SB0756PN0796 - 50 -

the same penalties imposed pursuant to 18 Pa.C.S. [§§ 6308

and 6310.4 (relating to restriction of operating privileges)]

§ 6308 except that the fine imposed for a violation of

subsection (a)(16) shall be not less than $350 nor more than

$1,000.

* * *

Section 30. Section 4101(c) of Title 4 is amended and the

section is amended by adding a subsection to read:

§ 4101. Fees.

* * *

increases the total number of video gaming terminals within the

establishment [after submission of the renewal fee required in

subsection (b)] shall provide the board with a $250 [renewal]

fee for each additional video gaming terminal added to the

establishment within 60 days of installation of each additional

video gaming terminal.

(c.1) Terminal increase fee.--A terminal operator licensee

shall provide written notice to the board prior to placing a

video gaming terminal at a truck stop establishment and shall

provide the board with the revised contract or other

documentation evidencing the truck stop establishment's

agreement and acceptance. Within 60 days of placement, the

terminal operator licensee shall pay of fee of $1,000 to the

board for each additional video gaming terminal placed.

Additional video gaming terminals shall be subject to the same

requirements as existing video gaming terminals.

* * *

Section 31. Section 4305 of Title 4 is repealed:

[§ 4305. Political influence.

20250SB0756PN0796 - 51 -

(a) Contribution restriction.--The following persons shall

be prohibited from contributing money or an in-kind contribution

to a candidate for nomination or election to a public office in

this Commonwealth, to a political party committee or other

political committee in this Commonwealth or to a group,

committee or association organized in support of a candidate,

political party committee or other political committee in this

Commonwealth:

(1) An applicant for a terminal operator license,

manufacturer license, supplier license, principal license or

a key employee license.

(2) A terminal operator licensee, manufacturer licensee

or supplier licensee.

(3) A licensed principal or licensed key employee of a

terminal operator licensee, manufacturer licensee or supplier

licensee.

(4) An affiliate, intermediary, subsidiary or holding

company of a terminal operator licensee, manufacturer

licensee or supplier licensee.

(5) A licensed principal or licensed key employee of an

affiliate, intermediary, subsidiary or holding company of a

terminal operator licensee, manufacturer licensee or supplier

licensee.

(6) A person who holds a similar video gaming license in

another jurisdiction and the affiliates, intermediaries,

subsidiaries, holding companies, principals or key employees

thereof.

(b) Contributions to certain associations and organizations

barred.--No individual prohibited from making political

contributions under subsection (a) may make a political

20250SB0756PN0796 - 52 -

contribution of money or an in-kind contribution to an

association or organization, including a nonprofit organization,

that has been solicited by, or knowing that the contribution or

a portion thereof will be contributed to, the elected official,

executive-level public employee or candidate for nomination or

election to a public office in this Commonwealth.

(1) The board shall establish a publicly accessible

Internet website that includes a list of all applicants for

and holders of a terminal operator license, manufacturer

license or supplier license and the affiliates,

intermediaries, holding companies, principals and key

employees thereof, all persons holding a similar video gaming

license in another jurisdiction, and the affiliates,

intermediaries, holding companies, principals and key

employees thereof, and other entities in which the applicant

or licensee has a debt or an equity security or other

ownership or profits interest. An applicant or licensee shall

notify the board within seven days of the discovery of a

change in or addition to the information.

(2) No individual who acts in good faith and in reliance

on the information on the board's publicly accessible

Internet website shall be subject to penalty or liability

imposed for a violation of this section.

(3) The board shall request the information required

under paragraph (1) from a person licensed in another

jurisdiction who does not hold a license in this Commonwealth

and from regulatory agencies in the other jurisdiction. If a

person who is a licensee in another jurisdiction refuses to

provide the information required under paragraph (1), the

20250SB0756PN0796 - 53 -

person and its officers, directors or persons with a

controlling interest shall be ineligible to receive a license

under this part.

(d) Annual certification.--The chief executive officer, or

other appropriate individual, of each applicant for a terminal

operator license, manufacturer license or supplier license, or

manufacturer licensee, supplier licensee or terminal operator

licensee, shall annually certify under oath to the board and the

Department of State that the applicant or supplier licensee,

manufacturer licensee or terminal operator licensee has

developed and implemented internal safeguards and policies

intended to prevent a violation of this provision and that the

applicant or supplier licensee, manufacturer licensee or

terminal operator licensee has conducted a good faith

investigation that has not revealed a violation of this

subsection during the past year.

(e) Penalties.--

(1) A violation of this section by a terminal operator

licensee or a person that holds a controlling interest in the

licensee, or a subsidiary company thereof, or an officer,

director or management-level employee of the licensee shall

be punishable as follows:

(i) A first violation of this section shall be

punishable by a fine equal to an amount not less than the

average single-day gross terminal revenue of the terminal

operator licensee.

(ii) A second violation of this section, within five

years of the first violation, shall be punishable by at

least a one-day suspension of the license held by the

terminal operator licensee and a fine equal to an amount

20250SB0756PN0796 - 54 -

not less than two times the average single-day gross

terminal revenue of the terminal operator licensee.

(iii) A third violation of this section within five

years of the second violation shall be punishable by the

immediate revocation of the license held by the terminal

operator licensee.

(2) A violation of this section by a manufacturer or

supplier licensed under this part or by a person that holds a

controlling interest in such manufacturer or supplier, or a

subsidiary company thereof, or an officer, a director or a

management-level employee of such a licensee shall be

punishable as follows:

(i) A first violation of this section shall be

punishable by a fine equal to an amount not less than a

single-day average of the gross profit from sales made by

the manufacturer or supplier in this Commonwealth during

the preceding 12-month period or portion thereof in the

event the manufacturer or supplier has not operated in

this Commonwealth for 12 months.

(ii) A second or subsequent violation of this

section within five years of a prior violation shall be

punishable by a one-month suspension of the license held

by the manufacturer or supplier and a fine equal to an

amount not less than two times a single-day average of

the gross profit from sales made by the manufacturer or

supplier in this Commonwealth during the preceding 12-

month period or portion thereof in the event the

manufacturer or supplier has not operated in this

Commonwealth for 12 months.

(3) In no event shall the fine imposed under this

20250SB0756PN0796 - 55 -

section be an amount less than $100,000 for each violation.

In addition to a fine or sanction that may be imposed by the

board under this subsection, an individual who makes a

contribution in violation of this section commits a

misdemeanor of the third degree.

(f) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection:

"Contribution." A payment, gift, subscription, assessment,

contract, payment for services, dues, loan, forbearance, advance

or deposit of money or a valuable thing made to a candidate or

political committee for the purpose of influencing an election

in this Commonwealth or for paying debts incurred by or for a

candidate or committee before or after an election. The term

includes:

(1) The purchase of tickets for events, including

dinners, luncheons, rallies and other fundraising events.

(2) The granting of discounts or rebates not available

to the general public.

(3) The granting of discounts or rebates by television

and radio stations and newspapers not extended on an equal

basis to all candidates for the same office.

(4) A payment provided for the benefit of a candidate,

including payment for the services of a person serving as an

agent of a candidate or committee by a person other than the

candidate or committee or person whose expenditures the

candidate or committee must report.

(5) The receipt or use of anything of value by a

political committee from another political committee and a

return on investments by a political committee.

20250SB0756PN0796 - 56 -

"Political committee." A committee, club, association or

other group of persons that receives contributions or makes

expenditures.]

Section 32. Title 4 is amended by adding a part to read:

PART IV

SKILL GAMING

Chapter

51. General Provisions

53. Administration

55. Application and Licensure

57. Operation

59. Enforcement

61. Revenues

63. Ethics

65. Miscellaneous Provisions

CHAPTER 51

GENERAL PROVISIONS

Sec.

5101. Scope of part.

5102. Definitions.

§ 5101. Scope of part.

This part relates to skill gaming terminals.

§ 5102. Definitions.

Subject to additional definitions contained in subsequent

provisions of this part which are applicable to specific

provisions of this part, the following words and phrases when

used in this part shall have the meanings given to them in this

section unless the context clearly indicates otherwise:

"Affiliate." A person who directly or indirectly, through

one or more intermediaries, controls, is controlled by or is

20250SB0756PN0796 - 57 -

under common control with a specified person.

"Applicant." A person who, on the person's own behalf or on

behalf of another, applies for permission to engage in an act or

activity that is regulated under the provisions of this part.

"Associated equipment." Equipment or a mechanical,

electromechanical or electronic contrivance, component or

machine used in connection with skill gaming terminals or

redemption terminals, including replacement parts, hardware and

software.

"Background investigation." A security, criminal, credit and

suitability investigation of a person as provided for in this

part that includes the status of taxes owed to the Commonwealth

and its political subdivisions.

"Board." The Pennsylvania Gaming Control Board established

under section 1201 (relating to Pennsylvania Gaming Control

Board established).

"Bureau." The Bureau of Investigations and Enforcement of

the board.

"Cash." United States currency and coin.

"Cash equivalent." A ticket, token, chip, card or other

similar instrument or representation of value that the board

deems a cash equivalent in accordance with this part.

"Central control computer." A central site computer

controlled by the department and accessible by the board to

which all skill gaming terminals communicate for the purpose of

auditing capacity, real-time information retrieval of the

details of any financial event that occurs in the operation of a

skill gaming terminal or redemption terminal, including coin in,

coin out, ticket in, ticket out, jackpots, skill gaming terminal

and redemption terminal door openings and power failure and

20250SB0756PN0796 - 58 -

remote skill gaming terminal or redemption terminal activation

and disabling of skill gaming terminals or redemption terminals.

"Cheat." Any of the following:

(1) To defraud or steal from a player, terminal operator

licensee, establishment licensee or the Commonwealth while

operating or playing a skill gaming terminal, including

causing, aiding, abetting or conspiring with another person

to do so.

(2) To alter or causing, aiding, abetting or conspiring

with another person to alter the elements of chance, method

of selection or criteria that determine:

(i) The result of a skill gaming terminal game.

(ii) The amount or frequency of payment in a skill

gaming terminal game.

(iii) The value of a wagering instrument.

(iv) The value of a wagering credit.

(3) The term does not include altering a skill gaming

terminal or associated equipment for maintenance or repair

with the approval of a terminal operator licensee and the

board.

"Cheating or thieving device." A device:

(1) used or possessed with the intent to be used to

cheat during the operation or play of a skill gaming

terminal; or

(2) used to alter a skill gaming terminal without the

terminal operator licensee's and the board's approval.

"Coin-operated amusement game." A machine that requires the

insertion of a coin, currency or token to play or activate a

game the outcome of which is predominantly and primarily

determined by the skill of the player and does not pay, award or

20250SB0756PN0796 - 59 -

offer a prize in the form of cash or merchandise. The term does

not include a slot machine or hybrid slot machine located at a

licensed facility as defined in Part II (relating to gaming), a

video gaming terminal located at a truck stop establishment as

defined in Part III (relating to video gaming) or a skill gaming

terminal as defined in this part.

"Compensation." Anything of value, money or a financial

benefit conferred on or received by a person in return for

services rendered or to be rendered whether by the person or

another.

"Complimentary service." A lodging, service or item that is

provided to an individual at no cost or at a reduced cost that

is not generally available to the public under similar

circumstances. Group rates, including convention and government

rates, shall be deemed to be generally available to the public.

"Conduct of skill gaming." The licensed placement, operation

and play of skill gaming terminals under this part, as

authorized and approved by the board.

"Controlling interest." Any of the following:

(1) For a publicly traded domestic or foreign

corporation, the term means a person has a controlling

interest in a legal entity, applicant or licensee if a

person's sole voting rights under state law or corporate

articles or bylaws entitle the person to elect or appoint one

or more of the members of the board of directors or other

governing board or the person holds an ownership or

beneficial holding of 5% or more of the securities of the

publicly traded corporation, partnership, limited liability

company or other form of publicly traded legal entity, unless

this presumption of control or ability to elect is rebutted

20250SB0756PN0796 - 60 -

by clear and convincing evidence.

(2) For a privately held domestic or foreign

corporation, partnership, limited liability company or other

form of privately held legal entity, the term means the

holding of any securities in the legal entity, unless this

presumption of control is rebutted by clear and convincing

evidence.

"Conviction." A finding of guilt or a plea of guilty or nolo

contendere, whether or not a judgment of sentence has been

imposed as determined by the law of the jurisdiction in which

the prosecution was held. The term does not include a conviction

that has been expunged or overturned or for which an individual

has been pardoned or had an order of Accelerated Rehabilitative

Disposition entered.

"Corporation." Includes a publicly traded corporation.

"County quota." The maximum number of skill gaming

establishment licenses available in each county in this

Commonwealth, which shall be equal to the aggregate number of

licenses issued by the Pennsylvania Liquor Control Board in a

county as of the effective date of this definition, limited to

liquor licenses in either active or safekeeping status, and

limited to the following liquor license categories:

(1) Brewery.

(2) Brewery pub.

(3) Brewery storage.

(4) Hotel (liquor).

(5) Hotel (malt).

(6) Restaurant.

(7) Catering club (liquor).

(8) Club (liquor).

20250SB0756PN0796 - 61 -

(9) Club (malt).

(10) Distributor (malt).

(11) Importing distributor (malt).

(12) Eating place retail dispenser (malt).

"Department." The Department of Revenue of the Commonwealth.

"Eligible establishment" or "eligible skill gaming

establishment." A premises that is either:

(1) A licensed premises approved by the Pennsylvania

Liquor Control Board for the sale of liquor, alcohol or malt

or brewed beverages under any of the following license

categories, limited to licenses in either active or

safekeeping status:

(i) Brewery.

(ii) Brewery pub.

(iii) Brewery storage.

(iv) Hotel (liquor).

(v) Hotel (malt).

(vi) Restaurant.

(vii) Catering club (liquor).

(viii) Club (liquor).

(ix) Club (malt).

(x) Distributor (malt).

(xi) Importing distributor (malt).

(xii) Eating place retail dispenser (malt).

(2) A location authorized to sell Pennsylvania Lottery

tickets or shares under the act of August 26, 1971 (P.L.351,

No.91), known as the State Lottery Law.

"Establishment license" or "skill gaming establishment

license." A license issued by the board authorizing an eligible

skill gaming establishment to enter into a terminal placement

20250SB0756PN0796 - 62 -

agreement, thus allowing a terminal operator licensee to place

and operate skill gaming terminals on the skill gaming

establishment licensee's premises under this part and

regulations promulgated under this part.

"Establishment licensee" or "skill gaming establishment

licensee." An eligible skill gaming establishment that holds an

establishment license under this part.

"Executive-level public employee." The term shall include

the following:

(1) A deputy secretary of the Commonwealth and the

Governor's Office executive staff.

(2) An employee of the Executive Branch whose duties

substantially involve licensing or enforcement under this

part, who has discretionary power that may affect or

influence the outcome of a Commonwealth agency's action or

decision or who is involved in the development of regulations

or policies relating to a licensed entity. The term includes

an employee with law enforcement authority.

(3) An employee of a county or municipality with

discretionary powers that may affect or influence the outcome

of the county's or municipality's action or decision related

to this part or who is involved in the development of law,

regulation or policy relating to matters regulated under this

part. The term includes an employee with law enforcement

authority.

(4) An employee of a department, agency, board,

commission, authority or other governmental body not included

in paragraph (1), (2) or (3) with discretionary power that

may affect or influence the outcome of the governmental

body's action or decision related to this part or who is

20250SB0756PN0796 - 63 -

involved in the development of regulation or policy relating

to matters regulated under this part. The term includes an

employee with law enforcement authority.

"Financial backer." An investor, mortgagee, bondholder,

noteholder or other sources of equity or capital provided to an

applicant or licensed entity.

"Gaming employee." Either of the following:

(1) An employee of a terminal operator licensee or

manufacturer licensee who is not a key employee and who the

board determines is involved in the conduct of skill gaming.

(2) An employee of an establishment licensee whom the

establishment licensee designates as the gaming manager in

accordance with this part.

"Gaming manager." A person designated by an establishment

licensee being:

(1) responsible for the management, supervision and

training of other establishment licensee employees regarding

the conduct of video gaming;

(2) responsible for coordinating video gaming operations

with a terminal operator; and

(3) available to promptly address any gaming-related

issues that arises at the premises of an establishment

licensee.

"Gaming service provider." A person not required to be

licensed as a terminal operator licensee, manufacturer licensee

or establishment licensee and provides goods or services to a

terminal operator licensee that the board determines directly

relates to the operation and security of a skill gaming terminal

or redemption terminal. The term shall not include a person that

supplies goods or services that, at the discretion of the board,

20250SB0756PN0796 - 64 -

does not impact the integrity of skill gaming, skill gaming

terminals or the connection of skill gaming terminals to the

central control computer system, including, but not limited to:

(1) Seating to accompany skill gaming terminals.

(2) Structural or cosmetic renovations, improvements or

other alterations to a skill gaming area.

"Gross terminal revenue." The total of cash or cash

equivalents received by a skill gaming terminal minus the total

of cash or cash equivalents paid out to players as a result of

playing a skill gaming terminal. The term does not include

counterfeit cash or cash taken in a fraudulent act perpetrated

against a terminal operator licensee for which the terminal

operator licensee is not reimbursed.

"Holding company." A person, other than an individual,

which, directly or indirectly, owns or has the power or right to

control or to vote a significant part of the outstanding voting

securities of a corporation or other form of business

organization. A holding company indirectly has, holds or owns

such power, right or security if it does so through an interest

in a subsidiary or successive subsidiaries.

"Incentive." Consideration, including a promotion or prize,

provided to a player or potential player as an enticement to

play a skill gaming terminal.

"Inducement."

(1) Any of the following:

(i) Consideration paid directly or indirectly, from

a manufacturer licensee, terminal operator licensee,

procurement agent, gaming employee, employee or another

person on behalf of an applicant or anyone licensed under

this part, to a skill gaming establishment, establishment

20250SB0756PN0796 - 65 -

licensee, establishment licensee owner, gaming manager or

an employee of the establishment licensee, directly or

indirectly, as an enticement to solicit or maintain the

establishment licensee or establishment licensee owner's

business.

(ii) Cash, incentive, marketing and advertising

costs, gift, food, beverage, loan, prepayment of gross

terminal revenue and other contribution or payment that

offsets an establishment licensee's operational costs, or

as otherwise determined by the board.

(2) The term does not include costs paid by a terminal

operator applicant or terminal operator licensee related to

making skill gaming terminals operate at the premises of an

establishment licensee, including wiring and rewiring,

software updates, ongoing skill gaming terminal maintenance,

redemption terminals, network connections, site controllers

and costs associated with communicating with the central

control computer system.

"Institutional investor." A retirement fund administered by

a public agency for the exclusive benefit of Federal, State or

local public employees, an investment company registered under

15 U.S.C. Ch. 2D Subch. I (relating to investment companies), a

collective investment trust organized by banks under Part IX of

the Rules of the Comptroller of the Currency, closed-end

investment trust, chartered or licensed life insurance company

or property and casualty insurance company, banking and other

chartered or licensed lending institution, an investment advisor

registered under 15 U.S.C. Ch. 2D Subch. II (relating to

investment advisers) and any other person as the board may

determine consistent with this part.

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"Intermediary." As follows:

(1) a holding company with respect to a corporation or

other form of business organization, that holds or applies

for a license under this part; and

(2) a subsidiary with respect to a holding company.

"Key employee." An individual employed by a manufacturer

licensee or a terminal operator licensee who is determined by

the board to have primary authority to make decisions regarding

the conduct of skill gaming.

"Law enforcement authority." The power to conduct

investigations of or to make arrests for criminal offenses.

"Licensed entity." A terminal operator licensee,

establishment licensee or manufacturer licensee under this part.

"Licensed entity representative." A person, including an

attorney, agent or lobbyist, acting on behalf of or authorized

to represent the interest of an applicant, licensee or other

person authorized by the board to engage in an act or activity

that is regulated under this part regarding a matter before or

that may reasonably be expected to come before the board.

"Licensee." A person licensed under this part.

"Manufacturer license." A license issued by the board

authorizing a person to sell, lease, offer or provide skill

gaming terminals and redemption terminals to a terminal operator

licensee or an applicant for a terminal operator licensee for

use or play in this Commonwealth.

"Manufacturer licensee." A person that holds a manufacturer

license issued by the board under this part.

"Minor." An individual under 21 years of age.

"Net terminal revenue." The net amount of the gross terminal

revenue less the tax and assessments imposed by section 6102

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(relating to taxes and assessments) and the regulatory

assessments established in section 6104 (relating to regulatory

assessments).

"Occupation permit." A permit issued by the board

authorizing an individual to be employed or to work as a gaming

employee.

"Party." The bureau or an applicant, licensee, registrant or

other person appearing of record in any proceeding before the

board.

"Permittee." A holder of a permit issued under this part.

"Person." A natural person, corporation, foundation,

organization, business trust, estate, limited liability company,

trust, partnership, limited liability partnership, association

or other form of legal business entity.

"Player." An individual who inserts cash or cash equivalent

in the play or operation of a skill gaming terminal, the play or

operation of which may deliver or entitle the player to receive

cash or cash equivalent from a terminal operator licensee.

"Principal." An officer, director, person who directly holds

a beneficial interest in or ownership of the securities of an

applicant or anyone licensed under this part, person who has a

controlling interest in an applicant or anyone licensed under

this part or has the ability to elect a majority of the board of

directors of a licensee or to otherwise control anyone licensed

under this part, procurement agent, lender or other licensed

financial institution of an applicant or anyone licensed under

this part, other than a bank or lending institution which makes

a loan or holds a mortgage or other lien acquired in the

ordinary course of business, underwriter of an applicant or

anyone licensed under this part or other person or employee of

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an applicant, terminal operator licensee, manufacturer licensee

deemed to be a principal by the board, including a procurement

agent.

"Procurement agent." A person that shares in the gross

terminal revenue or is otherwise compensated for the purpose of

soliciting or procuring a terminal placement agreement.

"Publicly traded corporation." A person, other than an

individual, that:

(1) has a class or series of securities registered under

15 U.S.C. Ch. 2B (relating to securities exchanges);

(2) is a registered management company under 15 U.S.C.

Ch. 2D Subch. I; or

(3) is subject to the reporting obligations imposed by

15 U.S.C. § 78o-6 (relating to securities analysts and

research reports) by reason of having filed a registration

statement that has become effective under 15 U.S.C. Ch. 2A

(relating to securities and trust indentures).

"Redemption terminal." The collective hardware, software,

communications technology and other ancillary equipment used to

facilitate the payment of cash or cash equivalent to a player as

a result of playing a skill gaming terminal.

"Security." As defined in section 102 of the act of December

5, 1972 (P.L.1280, No.284), known as the Pennsylvania Securities

Act of 1972.

"Skill gaming area." The area of an establishment licensee's

premises where skill gaming terminals and redemption terminals

are installed for operation and play.

"Skill Gaming Fund." The Skill Gaming Fund established in

section 6102 (relating to taxes and assessments).

"Skill gaming terminal." The following:

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(1) A mechanical or electrical contrivance, terminal,

machine or other device approved by the board that, upon

insertion of cash or cash equivalent, is available to play or

operate one or more games, the outcome of which game is

determined predominantly by the skill of the player, rather

than by chance, and offers the player the potential for a

winning result with every play.

(2) The term does not include a slot machine or hybrid

slot machine operated at a licensed facility in accordance

with Part II or a coin-operated amusement game.

(3) The term does not include the lottery as defined

under the State Lottery Law.

(4) The term does not include a video gaming terminal

operated at a truck stop establishment in accordance with

Part III.

(5) The term does not include a website, program,

software or mobile device application that offers the player

the ability to play a game that may award a winning player

cash or cash equivalent.

"Slot machine." As defined in section 1103 (relating to

definitions).

"State Treasurer." The State Treasurer of the Commonwealth.

"Subsidiary." As defined in section 1103.

"Terminal operator." A person that owns, services or

maintains skill gaming terminals for placement and operation on

the premises of an establishment licensee in this Commonwealth

pursuant to this part and the regulations promulgated under this

part.

"Terminal operator license." A license issued by the board

authorizing a terminal operator to place and operate skill

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gaming terminals in an establishment licensee's premises

pursuant to this part and the regulations promulgated under this

part.

"Terminal operator licensee." A person that holds a terminal

operator license issued by the board under this part.

"Terminal placement agreement." The formal written agreement

or contract between an applicant for a terminal operator license

or terminal operator licensee and an applicant for an

establishment license or establishment licensee which specifies

the terms and conditions regarding the conduct of skill gaming

at the premises of an establishment licensee or an applicant for

an establishment license.

CHAPTER 53

ADMINISTRATION

Sec.

5301. Powers of board.

5302. Regulatory authority of board.

5303. Temporary regulations.

5304. Appeals.

5305. Records and confidentiality of information.

5306. Reporting.

5307. (Reserved).

5308. Authority of department.

5309. Central control computer system.

5310. Department of Drug and Alcohol Programs or successor

agency.

§ 5301. Powers of board.

(a) General powers.--

(1) The board shall have general and sole regulatory

authority over the conduct of skill gaming or related

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activities as described in this part. The board shall ensure

the integrity of the acquisition and operation of skill

gaming terminals, redemption terminals and associated

equipment and shall have sole regulatory authority over every

aspect of the conduct of skill gaming.

(2) The board may employ individuals as necessary to

carry out the requirements of this part who shall serve at

the board's pleasure.

(b) Specific powers.--The board shall have the power and

duty:

(1) To require background investigations from applicants

and licensees under the jurisdiction of the board.

(2) At its discretion, to issue, approve, renew, revoke,

suspend, condition or deny issuance or renewal of licenses or

other authorizations that may be required under this part.

(3) At its discretion, to suspend, condition or deny

issuance or renewal of a license under this part or other

authorization or levy a fine or other sanction for a

violation of this part.

(4) To require prospective and licensed gaming employees

to submit to fingerprinting by the Pennsylvania State Police

or its authorized designee. The Pennsylvania State Police or

its authorized designee shall submit the fingerprints to the

Federal Bureau of Investigation for purposes of verifying the

identity of the individual and obtaining records of criminal

arrests and convictions.

(5) To require prospective and licensed gaming employees

to submit photographs consistent with a statement of policy

developed by the board.

(6) To determine the suitability of a person who

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furnishes or seeks to furnish to a terminal operator

licensee, either directly or indirectly, any goods, services

or property related to the conduct of skill gaming.

(7) To approve an application for or issue or renew a

license under this part or other authorization that may be

required by the board, if the board is satisfied the person

has demonstrated by clear and convincing evidence that the

person is of good character, honesty and integrity whose

prior activities, criminal record, if any, reputation, habits

and associations do not pose a threat to the public interest

or the effective regulation and control of skill gaming

operations or create or enhance the danger of unsuitable,

unfair or illegal practices, methods and activities in the

conduct of skill gaming or the carrying on of the business

and financial arrangements incidental thereto.

(8) To publish on the board's publicly accessible

Internet website a complete list of persons or entities who

applied for or held a terminal operator license,

establishment license or manufacturer license at any time

during the preceding calendar year and affiliates,

intermediaries, subsidiaries and holding companies thereof

and the status of the application or license.

(9) To prepare and, through the Governor, submit

annually to the General Assembly an itemized budget

consistent with Article VI of the act of April 9, 1929

(P.L.177, No.175), known as The Administrative Code of 1929,

consisting of the amounts necessary to be appropriated by the

General Assembly out of the accounts established under

section 6104 (relating to regulatory assessments) required to

meet the obligations under this part accruing during the

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fiscal period beginning July 1 of the following year.

(10) To collect and post information on the board's

publicly accessible Internet website with sufficient detail

to inform the public of persons with a controlling interest

or ownership interest in an applicant for a license under

this part or affiliate, intermediary, subsidiary or holding

company of an applicant for a license under this part. The

posting shall include:

(i) If the applicant is a publicly traded domestic

or foreign corporation, partnership, limited liability

company or other legal entity, the names of persons with

a controlling interest.

(ii) If the applicant is a privately held domestic

or foreign corporation, partnership, limited liability

company or other legal entity, the names of all persons

with an ownership interest equal to or greater than 1%.

(iii) The name of a person entitled to cast the vote

of a person named under subparagraph (i) or (ii).

(iv) The names of officers, directors and principals

of the applicant for a license or licensee.

(11) To determine, designate and classify employees of a

licensee as key employees.

this part are not enacted by June 30 of any year, money

appropriated for the administration of this part which is

unexpended, uncommitted and unencumbered at the end of a fiscal

year shall remain available for expenditure by the board or

other agency to which the money was appropriated until the

enactment of an appropriation for the ensuing fiscal year.

§ 5302. Regulatory authority of board.

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(a) Powers and duties.--The board shall have the power and

duty:

(1) To deny, deny the renewal, revoke, condition or

suspend a license or permit provided for in this part if the

board finds in the board's sole discretion that an applicant,

licensee or permittee under this part or its officers,

employees or agents have furnished false or misleading

information to the board or failed to comply with the

provisions of this part or the rules and regulations of the

board and that it would be in the public interest to deny,

deny the renewal, revoke, condition or suspend the license or

permit.

(2) To restrict access to confidential information in

the possession of the board that has been obtained under this

part and ensure that the confidentiality of information is

maintained and protected.

(3) To prescribe and require periodic financial

reporting and internal control requirements for terminal

operator licensees.

(4) To require that each terminal operator licensee

provide to the board the terminal operator licensee's annual

financial statements, with such additional detail as the

board shall require, which shall be submitted not later than

180 days after the end of the licensee's fiscal year.

(5) To prescribe the procedures to be followed by

terminal operator licensees for a financial event that occurs

in the operation and play of skill gaming terminals.

(6) To require that each establishment licensee

prohibits minors from operating or using skill gaming

terminals or redemption terminals or entering a skill gaming

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area.

(7) To establish procedures for the inspection and

certification of compliance of skill gaming terminals,

redemption terminals and associated equipment prior to being

placed into use on the premises of an establishment licensee

by a terminal operator licensee.

(8) To require that no skill gaming terminal may be set

to pay out less than the theoretical payout percentage, which

percentage shall be no less than 85%, as specifically

approved by the board, with respect to any portion or phase

of a game that the board determines in its sole discretion is

predominantly based on chance. The board shall adopt

regulations that define the theoretical payout percentage for

any predominantly chance-based portion or phase of a game

offered by a skill gaming terminal based on the total value

of the jackpots expected to be paid by a play on a skill

gaming terminal game divided by the total value of the skill

gaming terminal's wagers expected to be made on that play or

skill gaming terminal game during the same portion of the

game cycle.

(9) To require that every game offered by a skill gaming

terminal offers the player the potential for a winning result

with every play, and that the rules of play, including

notification of the potential for a winning result with every

play, are prominently displayed either on the skill gaming

terminal face or screen.

(10) To require that a terminal operator provide on

behalf of an establishment license applicant, detailed site

plans of proposed skill gaming area for review and approval

by the board for the purpose of determining the adequacy of

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the proposed security and surveillance measures as well as

documentation of all costs expended or to be expended by the

terminal operator at the premise of an establishment licensee

to ensure compliance with section 5702(b)(5) (relating to

skill gaming limitations). The applicant shall cooperate with

the board in making changes to the plans suggested by the

board and shall ensure that the plans as modified and

approved are implemented. The board may adopt rules to

establish reasonable placement requirements.

(11) To create rules and promulgate regulations

governing the advertisement of skill gaming terminals,

provided that the board shall require all advertisements to

display or reference the toll-free problem gambling telephone

number maintained by the Department of Drug and Alcohol

Programs or successor agency under section 5310(b) (relating

to Department of Drug and Alcohol Programs or successor

agency).

(12) To enter into contracts with persons for the

purposes of carrying out the powers and duties of the board

under this part.

(13) To adopt regulations governing the postemployment

limitations and restrictions applicable to members and

employees of the board subject to section 6302 (relating to

additional board restrictions). In developing the

regulations, the board may consult with the State Ethics

Commission, governmental agencies and the disciplinary board

of the Supreme Court regarding postemployment limitations and

restrictions on members and employees of the board who are

members of the Pennsylvania Bar.

(14) To review and approve all cash and cash equivalent

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handling policies and procedures employed by terminal

operator licensees.

(15) To promulgate regulations governing the placement

of automated teller machines within or adjacent to skill

gaming areas.

(16) To establish mandatory age-verification training

and procedures for establishment licensees and their

employees to ensure that minors do not utilize or access a

skill gaming area, skill gaming terminal or redemption

terminal.

(17) To establish mandatory online problem gambling

training to be completed by all employees of licensed

entities under this part.

(18) To determine in the board's sole discretion whether

a game, portion of a game or software meets the definition of

"skill gaming terminal" under section 5102 (relating to

definitions).

(19) To coordinate with the Bureau of Liquor Control

Enforcement of the Pennsylvania State Police to establish a

county quota for skill gaming establishment licenses for each

county in this Commonwealth, which shall be calculated as the

aggregate number of licenses issued by the Pennsylvania

Liquor Control Board in the following license categories for

each respective county as of the effective date, limited to

those licenses that are in either active or safekeeping

status:

(i) Brewery.

(ii) Brewery pub.

(iii) Brewery storage.

(iv) Hotel (liquor).

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(v) Hotel (malt).

(vi) Restaurant.

(vii) Catering club (liquor).

(viii) Club (liquor).

(ix) Club (malt).

(x) Distributor (malt).

(xi) Importing distributor (malt).

(xii) Eating place retail dispenser (malt).

(20) To prohibit the transfer of any skill gaming

establishment license to a location other than the location

for which the license was issued.

(21) To prohibit the issuance of any skill gaming

establishment license that would result in the applicable

county quota being exceeded.

(22) To establish procedures for an establishment

license that is revoked, suspended or surrendered, which

shall provide for reissuance of the establishment license to

an eligible establishment in the county where the license was

originally issued.

(23) To create rules and promulgate regulations

necessary for the administration and enforcement of this

part.

(b) Applicable law.--Except as provided in section 5303

(relating to temporary regulations), regulations shall be

adopted in accordance with the act of July 31, 1968 (P.L.769,

No.240), referred to as the Commonwealth Documents Law, and the

act of June 25, 1982 (P.L.633, No.181), known as the Regulatory

Review Act.

§ 5303. Temporary regulations.

(a) Promulgation.--In order to facilitate the prompt

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implementation of this part, regulations promulgated by the

board shall be deemed temporary regulations which shall expire

no later than two years following the publication of the

temporary regulations. The board may promulgate temporary

regulations not subject to:

(1) Section 612 of the act of April 9, 1929 (P.L.177,

No.175), known as The Administrative Code of 1929.

(2) Sections 201, 202, 203, 204 and 205 of the act of

July 31, 1968 (P.L.769, No.240), referred to as the

Commonwealth Documents Law.

(3) Section 204(b) of the act of October 15, 1980

(P.L.950, No.164), known as the Commonwealth Attorneys Act.

(4) The act of June 25, 1982 (P.L.633, No.181), known as

the Regulatory Review Act.

(b) Publication.--The board shall transmit the temporary

regulations promulgated under this section to the Legislative

Reference Bureau for publication in the next available issue of

the Pennsylvania Bulletin.

security and surveillance and standards for terminal placement

agreements, the authority provided to the board to adopt

temporary regulations in subsection (a) shall expire two years

following the publication of the temporary regulations.

Regulations adopted after that date shall be promulgated as

provided by law.

§ 5304. Appeals.

An applicant, licensee or permittee may appeal a final order,

determination or decision of the board involving the approval,

issuance, denial, revocation, nonrenewal, suspension or

conditioning, including any disciplinary actions, of a license,

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permit or authorization under this part in accordance with 2

Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of

Commonwealth agencies) and 7 Subch. A (relating to judicial

review of Commonwealth agency action).

§ 5305. Records and confidentiality of information.

(a) Records.--The board shall maintain files and records

deemed necessary for the administration and enforcement of this

part.

(b) Confidentiality of information.--

(1) The following information submitted by an applicant,

licensee or permittee under Chapter 55 (relating to

application and licensure) or obtained by the board or the

bureau as part of a background or other investigation from

any source shall be confidential and withheld from public

disclosure:

(i) Information relating to character, honesty and

integrity, including family, habits, reputation, history

of criminal activity, business activities, financial

affairs and business, professional and personal

associations submitted to or otherwise obtained by the

board or the bureau.

(ii) Nonpublic personal information, including home

addresses, telephone numbers and other personal contact

information, Social Security numbers, educational

records, memberships, medical records, tax returns and

declarations, actual or proposed compensation, financial

account records, creditworthiness or financial condition

relating to an applicant, licensee or permittee or the

immediate family thereof.

(iii) Information relating to proprietary

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information, trade secrets, patents or exclusive

licenses, architectural and engineering plans and

information relating to competitive marketing materials

and strategies, including customer-identifying

information or customer prospects for services subject to

competition.

(iv) Security information, including risk prevention

plans, detection and countermeasures, emergency

management plans, security and surveillance plans,

equipment and usage protocols and theft and fraud

prevention plans and countermeasures.

(v) Information with respect to which there is a

reasonable possibility that public release or inspection

of the information would constitute an unwarranted

invasion into personal privacy of an individual as

determined by the board.

(vi) Records of an applicant, licensee or permittee

not required to be filed with the securities and exchange

commission by issuers that either have securities

registered under 15 U.S.C. § 78l (relating to

registration requirements for securities) or are required

to file reports under 15 U.S.C. § 78o (relating to

registration and regulation of brokers and dealers).

(vii) Records considered nonpublic matters or

information by the Securities and Exchange Commission as

provided by 17 CFR 200.80 (relating to Securities and

Exchange Commission records and information).

(viii) Financial information provided to the board

by an applicant, licensee or permittee.

(2) No claim of confidentiality may be made regarding

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criminal history record information that is available to the

public under 18 Pa.C.S. § 9121(b) (relating to general

regulations).

(3) Except as provided in paragraph (1), no claim of

confidentiality may be made regarding a record in possession

of the board that is otherwise publicly available from the

board under the act of February 14, 2008 (P.L.6, No.3), known

as the Right-to-Know Law.

(4) Except as provided in section 5904(h) (relating to

investigations and enforcement), the information made

confidential under this section shall be withheld from public

disclosure in whole or in part, except that confidential

information shall be released upon the order of a court of

competent jurisdiction or, with the approval of the attorney

general, to a duly authorized law enforcement agency or shall

be released to the public, in whole or in part, to the extent

that the release is requested by an applicant, licensee or

permittee and does not otherwise contain confidential

information about another person.

(5) The board may seek a voluntary waiver of

confidentiality from an applicant, licensee or permittee but

may not require an applicant, licensee or permittee to waive

the confidentiality provided under this subsection as a

condition for the approval of an application, renewal of a

license or other action of the board.

(6) (i) No current or former member and no current or

former employee, agent or independent contractor of the

board, the department, the Pennsylvania State Police, the

Office of Attorney General or other Executive Branch

office who has obtained confidential information in the

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performance of duties under this part shall intentionally

disclose the information to a person, knowing that the

information being disclosed is confidential under this

subsection, unless the person is authorized by law to

receive the information.

(ii) A violation of this subsection shall constitute

a misdemeanor of the third degree.

(iii) In addition to any penalty under subparagraph

(ii), an employee, agent or independent contractor who

violates this subsection shall be administratively

disciplined by discharge, suspension, termination of

contract or other formal disciplinary action as

appropriate. If a current member violates this paragraph,

the other members shall refer the matter to the current

member's appointing authority.

to a duly authorized law enforcement agency pursuant to this

section, shall be given to an applicant or licensee in a manner

prescribed by the regulations adopted by the board.

(d) Information held by other agencies.--Files, records,

reports and other information in the possession of the

department pertaining to an applicant, licensee or permittee

shall be made available to the board as may be necessary to the

effective administration of this part.

§ 5306. Reporting.

(a) Report by board.--Beginning October 1, 2027, and every

year thereafter, the annual report submitted to the Governor and

the General Assembly by the board under section 1211 (relating

to reports of board) shall include information on the conduct of

skill gaming for the previous calendar year:

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(1) Total gross skill gaming terminal revenue.

(2) Total number of terminal operator licensees,

manufacturer licensees and establishment licensees.

(3) All taxes, fees, fines and other revenue collected

and, where appropriate, revenue disbursed. The department

shall collaborate with the board to carry out the

requirements of this paragraph.

(4) Other information related to the conduct of skill

gaming that the board deems appropriate.

(b) Participation.--The board may require licensees to

provide information to the board to assist in the preparation of

the report under subsection (a).

§ 5307. (Reserved).

§ 5308. Authority of department.

(a) Duties.--The department shall administer and collect

taxes imposed under this part and interest imposed under section

806 of the act of April 9, 1929 (P.L.343, No.176), known as The

Fiscal Code, and promulgate and enforce regulations to carry out

its prescribed duties in accordance with this part, including

the collection of taxes, penalties and interest imposed by this

part.

(b) Application of regulations.--The department may

prescribe the extent, if any, to which any regulations shall be

applied without retroactive effect. The department shall

prescribe the forms and the system of accounting and

recordkeeping to be employed and through its representative

shall at all times have power of access to and examination and

audit of any equipment and records relating to all aspects of

the operation of skill gaming terminals and redemption terminals

under this part.

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department may promulgate regulations in the same manner in

which the board is authorized as provided in section 5303

(relating to temporary regulations).

(d) Additional penalty.--A person who fails to timely remit

to the department or the State Treasurer amounts required under

this part shall be liable, in addition to liability imposed

elsewhere in this part, to a penalty of 5% per month up to a

maximum of 25% of the amounts ultimately found to be due, to be

recovered by the department.

(e) Liens and suits for taxes.--The provisions of this part

shall be subject to the provisions of sections 242 and 243 of

the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform

Code of 1971.

§ 5309. Central control computer system.

(a) Terminal requirements.--To facilitate the auditing and

security programs critical to the integrity of skill gaming

terminals in this Commonwealth, the department shall require

that skill gaming terminals and redemption terminals meet the

following:

(1) Terminals shall be linked, at an appropriate time to

be determined by the department, to a central control

computer under the control of the department and accessible

by the board to provide auditing program capacity and

individual terminal information as approved by the

department.

(2) Terminals shall include real-time information

retrieval and terminal activation and disabling programs.

(b) System requirements.--The central control computer

employed by the department shall provide:

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(1) A fully operational Statewide skill gaming terminal

control system that has the capability of supporting up to

the maximum number of skill gaming terminals authorized under

this part.

(2) The employment of a widely accepted gaming industry

protocol to facilitate a skill gaming terminal's ability to

communicate with the Statewide system.

(3) The delivery of a system that has the ability to

verify software, detect alterations in payout and detect

other methods of fraud in all aspects of the operation of

skill gaming terminals.

(4) The delivery of a system that does not alter the

statistical awards of skill gaming terminal games as designed

by the manufacturer licensee and approved by the board.

(5) The delivery of a system that provides redundancy so

that each component of the network is capable of operating

independently if any component of the network, including the

central control computer, fails or cannot be operated for any

reason as determined by the department, and to assure that

all transactional data is captured and secured. Costs

associated with a computer system required by the department

to operate within a skill gaming area, whether independent or

as part of the central control computer, shall be paid by the

terminal operator licensee. The computer system shall be

controlled by the department and accessible to the board.

(6) The ability to meet all reporting and control

requirements as prescribed by the board and department.

(7) The delivery of a system that provides centralized

issuance of cash redemption tickets and facilitates the

acceptance of the tickets by skill gaming terminals and

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redemption terminals.

(8) Other capabilities as determined by the department

in consultation with the board.

not provide for the monitoring or reading of personal or

financial information concerning a player of a terminal operator

licensee.

(d) Initial acquisition of central control computer.--

(1) In order to facilitate the prompt implementation of

this part, initial contracts entered into by the department

for a central control computer, including necessary computer

hardware, software, licenses or related services, shall not

be subject to the provisions of 62 Pa.C.S. (relating to

procurement).

(2) Contracts made pursuant to the provisions of this

section may not exceed five years.

(e) Resolution of contract disputes.--The process specified

in 62 Pa.C.S. Ch. 17 Subch. B (relating to prelitigation

resolution of controversies) shall be the sole means of

resolution for controversies arising with respect to contracts

executed under this section.

(f) Existing central control computer system.--The

department, in its discretion, may alter or utilize the central

control computer system controlled by the department under

section 1323 (relating to central control computer system) to

fulfill the requirements of this section.

§ 5310. Department of Drug and Alcohol Programs or successor

agency.

(a) Program update.--

(1) The Department of Drug and Alcohol Programs or a

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successor agency shall update the compulsive and problem

gambling program established in section 1509 (relating to

compulsive and problem gambling program) to address public

education, awareness and training regarding compulsive and

problem gambling and the treatment and prevention of

compulsive and problem gambling related to skill gaming

terminals.

(2) The updated guidelines shall include strategies for

the prevention of compulsive and problem gambling related to

skill gaming terminals.

(3) The Department of Drug and Alcohol Programs or a

successor agency may consult with the board and terminal

operator licensees to develop the strategies.

(b) Duties of Department of Drug and Alcohol Programs or

successor agency.--From money available in the Compulsive and

Problem Gambling Treatment Fund, the Department of Drug and

Alcohol Programs or a successor agency shall with respect to

skill gaming terminals:

(1) Maintain one compulsive gambler's assistance

organization's toll-free problem gambling telephone number,

which number shall be 1-800-GAMBLER, to provide crisis

counseling and referral services to individuals and families

experiencing difficulty as a result of problem or compulsive

gambling.

(2) Maintain one compulsive gambler's assistance

organization's telephone number, which shall be accessible

via a free text message service, to provide crisis counseling

and referral services to individuals and families

experiencing difficulty as a result of problem or compulsive

gambling.

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(3) Facilitate, through in-service training and other

means, the availability of effective assistance programs for

problem and compulsive gamblers and family members affected

by problem and compulsive gambling.

(4) At its discretion, conduct studies to identify

individuals in this Commonwealth who are or are at risk of

becoming problem or compulsive gamblers.

(5) Provide grants to and contract with single county

authorities and other organizations that provide services

specified in this section.

(6) Reimburse organizations for reasonable expenses

incurred assisting the Department of Drug and Alcohol

Programs or successor agency with implementing this section.

(7) Maintain a comprehensive list of all self-excluded

individuals under section 1516 (relating to list of persons

self excluded from gaming activities), 3903 (relating to

self-exclusion) or 5903 (relating to self-exclusion).

effective date of this subsection, the Department of Drug and

Alcohol Programs or a successor agency and the board's Office of

Compulsive and Problem Gambling shall jointly collaborate with

other appropriate offices and agencies of State or local

government, including single county authorities and providers

and other persons, public or private, with expertise in

compulsive and problem gambling treatment with respect to skill

gaming terminals to:

(1) Implement a strategic plan for the prevention and

treatment of compulsive and problem gambling.

(2) Adopt compulsive and problem gambling treatment

standards to be integrated with the Department of Drug and

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Alcohol Programs' or a successor agency's uniform Statewide

guidelines that govern the provision of addiction treatment

services.

(3) Develop a method to coordinate compulsive and

problem gambling data collection and referral information to

crisis response hotlines, child welfare and domestic violence

programs and providers and other appropriate programs and

providers.

(4) Develop and disseminate educational materials to

provide public awareness related to the prevention,

recognition and treatment of compulsive and problem gambling.

(5) Develop demographic-specific compulsive and problem

gambling prevention, intervention and treatment programs.

(6) Prepare an itemized budget outlining how money will

be allocated to fulfill the responsibilities under this

section.

(d) Report.--The Department of Drug and Alcohol Programs or

a successor agency shall include in the report required under

section 1509 information involving skill gaming terminals.

CHAPTER 55

APPLICATION AND LICENSURE

Sec.

5501. General prohibition.

5502. Terminal operator licenses.

5503. (Reserved).

5504. Principal licenses.

5505. Key employee licenses.

5506. Divestiture of disqualifying applicant.

5507. (Reserved).

5508. Manufacturer licenses.

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5509. Gaming service provider.

5510. Occupation permit.

5511. Alternative terminal operator licensing standards.

5512. Alternative manufacturer licensing standards.

5513. (Reserved).

5514. Establishment licenses.

5515. License or permit prohibition.

5516. Issuance and renewal.

5517. Change in ownership or control of terminal operator

licensee.

5518. Skill gaming accounting controls and audits.

5519. Multiple licenses prohibited.

§ 5501. General prohibition.

Within 10 months after the effective date of this section, a

person who offers or otherwise makes available for play in this

Commonwealth any game that involves any element of chance,

regardless of the extent to which the outcome of play is

determined by elements of chance or by the skill of the player,

and such game is not licensed and regulated by the board or

expressly authorized by the laws of this Commonwealth, such

person commits a crime in violation of 18 Pa.C.S. § 5513

(relating to gambling devices, gambling, etc.) and is subject to

the penalties therein, as well as the penalties specified in

section 5905 (relating to prohibited acts and penalties).

§ 5502. Terminal operator licenses.

(a) General requirements.--An application for a terminal

operator license shall be on the form developed and required by

the board and shall include, at a minimum, all of the following:

(1) The name, address and photograph of the applicant

and of all directors and owners and key employees and their

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positions within the corporation or organization, as well as

additional financial information required by the board.

(2) A current tax lien certificate issued by the

department.

(3) The details of any gaming license applied for,

granted to or denied to the applicant by another jurisdiction

where the form of gaming is legal and the consent for the

board to acquire copies of the application submitted or

license issued in connection with the application.

(4) The details of any loan obtained from a financial

institution or not obtained from a financial institution.

(5) The consent to conduct a background investigation by

the board, the scope of which investigation shall be

determined by the bureau in its discretion consistent with

this part and a release signed by all persons subject to the

investigation of all information required to complete the

investigation.

(6) The details of the applicant's diversity plan to

ensure that all persons are accorded equality of opportunity

in employment and contracting by the applicant, its

contractors, subcontractors, assignees, lessees, agents,

vendors and suppliers.

(7) Any information concerning maintenance and operation

of skill gaming terminals in any other jurisdiction.

(8) Proof that the applicant has or will establish a

place of business in this Commonwealth. A terminal operator

licensee shall maintain its place of business in this

Commonwealth to remain eligible for licensure.

(9) Any other information determined to be appropriate

by the board.

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(b) Character requirements.--An application for a terminal

operator license shall include such information, documentation

and assurances as may be required to establish by clear and

convincing evidence of the applicant's suitability, including

good character, honesty and integrity. The application shall

include, without limitation, information pertaining to family,

habits, character, reputation, criminal history background,

business activities, financial affairs and business,

professional and personal associates, covering at least the 10-

year period immediately preceding the filing date of the

application.

any civil judgment obtained against the applicant pertaining to

laws of the Federal Government, this Commonwealth or another

state, jurisdiction, province or country.

(d) (Reserved).

(e) (Reserved).

(f) Additional eligibility requirements.--In order to be

eligible for a terminal operator license under this part, the

principals and key employees of the applicant must obtain a

license to meet the character requirements of this section or

other eligibility requirements established by the board.

(g) Classification system.--The board shall develop a

classification system for other agents, employees or persons who

directly or indirectly hold or are deemed to be holding debt or

equity securities or other financial interest in the applicant

and for other persons that the board considers appropriate for

review under this section.

(h) Related entities.--

(1) Except as provided in paragraph (2), a person may

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not be eligible to receive a terminal operator license unless

the principals and key employees of each intermediary or

holding company of the person meet the requirements of

subsection (f).

(2) The board may require that lenders and underwriters

of intermediaries, subsidiaries or holding companies of a

terminal operator license applicant meet the requirements of

subsection (f) if the board determines that the suitability

of a lender or underwriter is at issue and necessary to

consider a pending application for a terminal operator

license.

(i) Revocable privilege.--The issuance or renewal of a

license or other authorization by the board under this section

shall be a revocable privilege.

(j) Waiver for publicly traded corporations.--The board may

waive the requirements of subsection (f) for a person directly

or indirectly holding ownership of securities in a publicly

traded corporation if the board determines that the holder of

the securities does not have the ability to control the

corporation or elect one or more directors thereof.

(k) (Reserved).

(l) Ongoing duty.--A person applying for a license or other

authorization under this part shall continue to provide

information required by the board or the bureau and cooperate in

any inquiry or investigation.

(m) Criminal history record check.--The board may conduct a

criminal history record check on a person for whom a waiver is

granted under this section.

(n) Applicant financial information.--

(1) The board shall require an applicant for a terminal

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operator license to produce the information, documentation

and assurances concerning financial background and resources

as the board deems necessary to establish by clear and

convincing evidence the financial stability, integrity and

responsibility of the applicant, its affiliate, intermediary,

subsidiary or holding company, including bank references,

business and personal income and disbursement schedules, tax

returns and other reports filed with governmental agencies

and business and personal accounting and check records and

ledgers.

(2) An applicant shall in writing authorize the

examination of all bank accounts and records as may be deemed

necessary by the board.

(o) Financial backer information.--

(1) The board shall require an applicant for a terminal

operator license to produce the information, documentation

and assurances as may be necessary to establish by clear and

convincing evidence the integrity of all financial backers,

institutional investors, investors, mortgagees, bondholders

and holders of indentures, notes or other evidences of

indebtedness, either in effect or proposed.

(2) The board may waive the qualification requirements

for banking or lending institutions and institutional

investors.

(3) A banking or lending institution or institutional

investor shall produce for the board upon request any

document or information that bears relation to the proposal

submitted by the applicant or applicants.

(4) The integrity of the financial sources shall be

judged upon the same standards as the applicant. Any such

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person or entity shall produce for the board upon request any

document or information which bears any relation to the

application.

(5) The applicant shall produce whatever information,

documentation or assurances the board requires to establish

by clear and convincing evidence the adequacy of financial

resources.

(p) Applicant's business experience.--

(1) The board shall require an applicant for a terminal

operator license to produce the information, documentation

and assurances as the board may require to establish by clear

and convincing evidence that the applicant has sufficient

business ability and experience to create and maintain a

successful, efficient operation.

(2) An applicant shall produce the names of all proposed

key employees and a description of the proposed key

employees' respective or proposed responsibilities as they

become known.

(q) Additional information.--In addition to other

information required by this part, a person applying for a

terminal operator license shall provide the following

information:

(1) The organization, financial structure and nature of

all businesses operated by the person, including any

affiliate, intermediary, subsidiary or holding companies, the

names and personal employment and criminal histories of all

officers, directors and key employees of the corporation; the

names of all holding, intermediary, affiliate and subsidiary

companies of the corporation; and the organization, financial

structure and nature of all businesses operated by such

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holding, intermediary and subsidiary companies as the board

may require, including names and personal employment and

criminal histories of such officers, directors and principal

employees of such corporations and companies as the board may

require.

(2) The extent of securities held in the corporation by

all officers, directors and underwriters and their

remuneration in the form of salary, wages, fees or otherwise.

(3) Copies of all management and service contracts.

(r) Review and approval.--Upon being satisfied that the

requirements of subsections (a), (b), (c), (f), (g), (h), (i),

(j), (l), (m), (n), (o), (p) and (q) have been met, the board

may approve the application and issue the applicant a terminal

operator license consistent with all of the following:

(1) (i) The license shall be valid for a period of five

years.

(ii) Nothing in this paragraph shall be construed to

relieve a licensee of the affirmative duty to notify the

board of any changes relating to the status of its

license or to any information contained in the

application materials on file with the board.

(2) The license shall be nontransferable.

(3) Any other condition established by the board.

(s) Renewal.--

(1) At least six months prior to expiration of a

terminal operator license, the terminal operator licensee

seeking renewal of its license shall submit a renewal

application to the board.

(2) If the renewal application satisfies the

requirements of subsections (a), (b), (c), (f), (g), (h),

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(i), (j), (l), (m), (n), (o), (p) and (q), the board may

renew the licensee's terminal operator license.

(3) If the board receives a complete renewal application

but fails to act upon the renewal application prior to the

expiration of the terminal operator license, the terminal

operator license shall continue in effect until acted upon by

the board.

§ 5503. (Reserved).

§ 5504. Principal licenses.

(a) License required.--All principals shall obtain a

principal license from the board.

(b) Application.--A principal license application shall be

in a form prescribed by the board and shall include the

following:

(1) Verification of status as a principal from a

terminal operator licensee or manufacturer licensee.

(2) A description of responsibilities as a principal.

(3) All releases necessary to obtain information from

governmental agencies, employers and other organizations.

(4) Details relating to a similar license, permit or

other authorization obtained in another jurisdiction.

(5) Additional information required by the board.

background investigation, the board may issue a principal

license if the applicant has proven by clear and convincing

evidence that the applicant is a person of good character,

honesty and integrity and is eligible and suitable to be

licensed as a principal.

(d) Nontransferability.--A license issued under this section

shall be nontransferable.

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(e) Principals.--An individual who receives a principal

license need not obtain a key employee license.

§ 5505. Key employee licenses.

(a) License required.--A key employee, including a gaming

manager and a procurement agent, shall obtain a key employee

license from the board, regardless of whether employed by a

licensee or serving as an independent contractor to the

licensee.

(b) Application.--A key employee license application shall

be in a form prescribed by the board and shall include the

following:

(1) Verification of status as a key employee from a

terminal operator licensee, establishment licensee or

manufacturer licensee.

(2) A description of employment responsibilities.

(3) All releases necessary to obtain information from

governmental agencies, employers and other organizations.

(4) Details relating to a similar license or other

authorization obtained in another jurisdiction.

(5) Additional information required by the board.

background investigation, the board may issue a key employee

license if the applicant has proven by clear and convincing

evidence that the applicant is a person of good character,

honesty and integrity and is eligible and suitable to be

licensed as a key employee.

(d) Nontransferability.--A license issued under this section

shall be nontransferable.

§ 5506. Divestiture of disqualifying applicant.

(a) Board power to require.--

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(1) In the event that an establishment license

application, terminal operator license application or

manufacturer license application is not approved by the board

based on a finding that an individual who is a principal or

has an interest in the person applying for the license does

not meet the character requirements of this part or any of

the eligibility requirements under this part or a person who

purchases a controlling interest in the applicant in

violation of section 5517 (relating to change in ownership or

control of terminal operator licensee), the board may afford

the individual the opportunity to completely divest the

individual's interest in the person, its affiliate,

intermediary, subsidiary or holding company seeking the

license and, after divestiture, reconsider the person's or

applicant's suitability for licensure in an expedited

proceeding and may, after the proceeding, issue the person or

applicant a terminal operator license.

(2) The board shall approve the terms and conditions of

any divestiture under this section.

(b) Limitation.--Under no circumstances shall any

divestiture be approved by the board if the compensation for the

divested interest exceeds the cost of the interest.

§ 5507. (Reserved).

§ 5508. Manufacturer licenses.

(a) Application.--A person seeking to manufacture skill

gaming terminals, redemption terminals and associated equipment

for use in this Commonwealth must apply to the board for a

manufacturer license.

(b) Requirements.--An application for a manufacturer license

shall be on a form required by the board and shall include all

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of the following:

(1) The name and business address of the applicant and

the applicant's affiliates, intermediaries, subsidiaries and

holding companies; the principals and key employees of each

business; and a list of employees and their positions within

each business, as well as financial information required by

the board.

(2) A statement that the applicant and each affiliate,

intermediary, subsidiary or holding company of the applicant

are not terminal operator licensees.

(3) The consent to a background investigation by the

bureau of the applicant, its principals, its key employees,

its intermediaries, its subsidiaries or other persons

required by the board and a release to obtain the information

necessary for the completion of the background investigation.

(4) The details of any equivalent license granted or

denied by other jurisdictions where gaming activities as

authorized by this part are permitted.

(5) The details of any manufacturer license issued by

the board to the applicant under section 1317.1 (relating to

manufacturer licenses) or 3508 (relating to manufacturer

licenses), if applicable.

(6) The type of skill gaming terminals, redemption

terminals or associated equipment to be manufactured or

repaired.

(7) Other information determined by the board to be

appropriate.

requirements of subsection (b) have been met, the board may

approve the application and grant the applicant a manufacturer

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license consistent with all of the following:

(1) (i) The license shall be valid for a period of five

years.

(ii) Nothing in this paragraph shall be construed to

relieve the licensee of the affirmative duty to notify

the board of a change relating to the status of its

license or to other information contained in application

materials on file with the board.

(2) The license shall be nontransferable.

(3) Other conditions established by the board.

(d) Renewal.--

(1) At least six months prior to expiration of a

manufacturer license, the manufacturer licensee seeking

renewal of its license shall submit a renewal application

accompanied by the renewal fee to the board.

(2) If the renewal application satisfies the

requirements of subsection (b), the board may renew the

licensee's manufacturer license.

(3) If the board receives a complete renewal application

but fails to act upon the renewal application prior to the

expiration of the manufacturer license, the manufacturer

license shall continue in effect until acted upon by the

board.

(e) Authority.--A manufacturer licensee or its designee, as

licensed by the board under this part, may supply or repair a

skill gaming terminal, redemption terminal or associated

equipment manufactured by the manufacturer licensee.

(f) Prohibitions.--

(1) No person may manufacture skill gaming terminals,

redemption terminals or associated equipment for sale, lease

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or use within this Commonwealth unless the person has been

issued a manufacturer license under this part.

(2) No person issued a manufacturer license under this

section may apply for or be issued a terminal operator

license under section 5502 (relating to terminal operator

licenses) or establishment license under section 5514

(relating to establishment licenses).

§ 5509. Gaming service provider.

(a) Development of classification system.--The board shall

develop a classification system governing the certification,

registration and regulation of gaming service providers and

individuals and entities associated with them. The

classification system shall be based upon the following:

(1) Whether the employees of the gaming service provider

will have access to the skill gaming area or skill gaming

terminals or redemption terminals prior to or after

installation.

(2) Whether the goods or services provided or to be

provided by the gaming service provider would impact the

integrity of the conduct of skill gaming.

(b) Authority to exempt.--The board may exempt a person or

type of business from the requirements of this section if the

board determines:

(1) the person or type of business is regulated by an

agency of the Federal Government, an agency of the

Commonwealth or the Pennsylvania Supreme Court; or

(2) the regulation of the person or type of business is

determined not to be necessary in order to protect the public

interest or the integrity of gaming.

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provider shall have a continuing duty to:

(1) Provide all information, documentation and

assurances as the board may require.

(2) Cooperate with the board in investigations, hearings

and enforcement and disciplinary actions.

(3) Comply with all conditions, restrictions,

requirements, orders and rulings of the board in accordance

with this part.

(4) Report a change in circumstances that may render the

gaming service provider ineligible, unqualified or unsuitable

for continued registration or certification.

(d) Requirement for permit.--The board may require employees

of a gaming service provider to obtain a permit or other

authorization if, after an analysis of duties, responsibilities

and functions, the board determines that a permit or other

authorization is necessary to protect the integrity of gaming.

(e) Interim authorization.--The board or a designated

employee of the board may permit a gaming service provider

applicant to engage in business with an applicant for a terminal

operator license or a terminal operator licensee prior to

approval of the gaming service provider application if the

following criteria have been satisfied:

(1) A completed application has been filed with the

board by the gaming service provider.

(2) The terminal operator license applicant or terminal

operator licensee contracting or doing business with the

gaming service provider certifies that it has performed due

diligence on the gaming service provider and believes that

the applicant meets the qualification to be a gaming service

provider under this section.

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(3) The gaming service provider applicant agrees in

writing that the grant of interim authorization to conduct

business prior to board approval of the application does not

create a right to continue to engage in business if the board

determines that the applicant is not suitable or continued

authorization is not in the public interest.

(f) Construction.--Nothing in this section shall be

construed to prohibit the board from rescinding a grant of

interim authorization if, at any time, the suitability of the

person subject to interim authorization is at issue or if the

person fails to cooperate with the board or the bureau or an

agent of the board or bureau.

(g) Gaming service provider lists.--

(1) The board shall:

(i) Develop and maintain a list of approved gaming

service providers who are authorized to provide goods or

services whether under a grant of interim or continued

authorization.

(ii) Develop and maintain a list of prohibited

gaming service providers.

(2) An applicant for a terminal operator license or a

terminal operator licensee may not enter into an agreement or

engage in business with a gaming service provider listed on

the prohibited gaming service provider list.

(h) Emergency authorization.--

(1) A terminal operator licensee may utilize a gaming

service provider that has not been approved by the board when

a threat to public health, welfare or safety exists or

circumstances outside the control of the terminal operator

licensee require immediate action to mitigate damage or loss

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to the licensee's skill gaming terminals.

(2) The board shall promulgate regulations to govern the

use of gaming service providers under emergency

circumstances. The regulations shall include a requirement

that the terminal operator licensee contact the board

immediately upon utilizing a gaming service provider that has

not been approved by the board.

(i) Criminal history record information.--If the

classification system developed by the board in accordance with

subsection (a) requires a gaming service provider or an

individual or entity associated with the gaming service provider

to submit to or provide the bureau with criminal history record

information under 18 Pa.C.S. Ch. 91 (relating to criminal

history record information), the bureau shall notify a terminal

operator licensee that submitted a certification under

subsection (e)(2) whether the applicant has been convicted of a

felony or misdemeanor gambling offense.

§ 5510. Occupation permit.

(a) Application.--

(1) An individual who desires to be a gaming employee

and has a bona fide offer of employment from a terminal

operator licensee or establishment licensee shall apply to

the board for an occupation permit.

(2) An individual may not be employed as a gaming

employee unless and until that individual holds an

appropriate occupation permit issued under this section.

(3) The board may promulgate regulations to reclassify a

category of nongaming employees or gaming employees upon a

finding that the reclassification is in the public interest

and consistent with the objectives of this part.

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(b) Requirements.--The application for an occupation permit

shall include, at a minimum:

(1) The name and home address of the individual.

(2) The previous employment history of the individual.

(3) The criminal history record of the individual, as

well as the individual's consent for the bureau to conduct a

background investigation.

(4) A photograph of the individual.

(5) Evidence of the offer of employment and the nature

and scope of the proposed duties of the individual, if known.

(6) The details of an occupation permit or similar

license granted or denied to the individual in other

jurisdictions.

(7) Other information determined by the board to be

appropriate.

employ or permit an individual under 18 years of age to render

service in a skill gaming area.

§ 5511. Alternative terminal operator licensing standards.

(a) Determination.--

(1) The board may determine whether the licensing

standards of another jurisdiction within the United States in

which an applicant, its affiliate, intermediary, subsidiary

or holding company for a terminal operator license is

similarly licensed are comprehensive and thorough and provide

similar adequate safeguards as those required by this part.

(2) If the board makes that determination, the board may

issue a terminal operator license to an applicant who holds a

terminal operator license in the other jurisdiction after

conducting an evaluation of the information relating to the

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applicant from the other jurisdictions, as updated by the

board, and evaluating other information related to the

applicant received from that jurisdiction and other

jurisdictions where the applicant may be licensed, the board

may incorporate such information in whole or in part into the

board's evaluation of the applicant.

(b) Abbreviated process.--

(1) In the event an applicant for a terminal operator

license is licensed in another jurisdiction, the board may

determine to use an alternate process requiring only that

information determined by the board to be necessary to

consider the issuance of a license, including financial

viability of the licensee, to such an applicant.

(2) Nothing in this section shall be construed to waive

fees associated with obtaining a license through the normal

application process.

a terminal operator license under this part holds a slot machine

license under Part II (relating to gaming) or a terminal

operator license under Part III (relating to video gaming), the

board shall use an abbreviated process requiring only that

information determined by the board to be necessary to consider

the issuance of a license, including financial viability of the

applicant.

(d) Construction.--Nothing in this subsection shall be

construed as an authorization for a terminal operator,

manufacturer licensee or applicant to solicit or execute a

terminal placement agreement prior to or after the effective

date of this section.

§ 5512. Alternative manufacturer licensing standards.

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(a) Determination.--

(1) The board may determine whether the licensing

standards of another jurisdiction within the United States in

which an applicant for a manufacturer license is similarly

licensed are comprehensive and thorough and provide similar

adequate safeguards as those required by this part.

(2) If the board makes that determination, the board may

issue a manufacturer license to an applicant who holds a

similar manufacturer license in the other jurisdiction after

conducting an evaluation of the information relating to the

applicant from the other jurisdictions, as updated by the

board, and evaluating other information related to the

applicant received from that jurisdiction and other

jurisdictions where the applicant may be licensed, the board

may incorporate such information in whole or in part into the

board's evaluation of the applicant.

(b) Abbreviated process.--

(1) In the event an applicant for a manufacturer license

is licensed in another jurisdiction, the board may determine

to use an abbreviated process requiring only that information

determined by the board to be necessary to consider the

issuance of a license, including financial viability of the

applicant.

(2) Nothing in this section shall be construed to waive

fees associated with obtaining a license through the normal

application process.

a manufacturer license under this part holds a manufacturer

license under section 1317.1 (relating to manufacturer licenses)

or 3508 (relating to manufacturer licenses), the board may

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determine to use an abbreviated process requiring only that

information determined by the board to be necessary to consider

the issuance of a license, including financial viability of the

applicant.

§ 5513. (Reserved).

§ 5514. Establishment licenses.

(a) General requirements.--An eligible skill gaming

establishment that submits an application for an establishment

license under this part shall include at a minimum:

(1) The name, address and photograph of the applicant

and additional financial information required by the board.

(2) A description of the proposed surveillance and

security measures to ensure the security of the proposed

skill gaming area.

(3) A current tax lien certificate issued by the

department.

(4) The criminal history record of the applicant.

(5) Verification that the applicant meets the definition

of an eligible establishment under section 5102 (relating to

definitions).

(b) Nontransferability.--A license issued under this section

shall not be transferable.

applying for a license under this section shall continue to

provide information required by the board or the bureau and

cooperate in any inquiry or investigation.

(d) Review and approval.--Upon being satisfied that the

requirements of subsection (a) have been met, the board may

approve the application and issue the applicant an establishment

license consistent with all of the following:

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(1) (i) The license shall be valid for a period of five

years.

(ii) Nothing in this paragraph shall be construed to

relieve a licensee of the affirmative duty to notify the

board of a change relating to the status of its license

or to information contained in application materials on

file with the board.

(2) The license shall be nontransferable.

(3) Other conditions established by the board.

(e) Renewal.--

(1) At least six months prior to expiration of an

establishment license, the establishment licensee seeking

renewal of its license shall submit a renewal application

accompanied by the renewal fee to the board.

(2) If the renewal application satisfies the

requirements of subsection (d), the board may renew the

establishment license.

(3) If the board receives a complete renewal application

but fails to act upon the renewal application prior to the

expiration of the establishment license, the establishment

license shall continue in effect until acted upon by the

board.

(f) Eligibility requirements.--

(1) Beginning 180 days after the effective date of this

paragraph, an applicant shall have a 120-day period to apply

for a skill gaming establishment license. An applicant must

hold one of the following categories of license issued by the

Pennsylvania Liquor Control Board, which license shall be

either active or in safekeeping status:

(i) Brewery.

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(ii) Brewery pub.

(iii) Brewery storage.

(iv) Hotel (liquor).

(v) Hotel (malt).

(vi) Restaurant.

(vii) Catering club (liquor).

(viii) Club (liquor).

(ix) Club (malt).

(x) Distributor (malt).

(xi) Importing distributor (malt).

(xii) Eating place retail dispenser (malt).

(2) Beginning one year after the effective date of this

paragraph, any establishment that is a lottery sales agent

under section 305 of the act of August 26, 1971 (P.L.351,

No.91), known as the State Lottery Law, may apply to the

board for any remaining establishment licenses, up to the

county quota.

(3) The board shall accept applications from lottery

sales agents for a period of 60 days.

(4) If the number of applications received by the board

from lottery agents in a given county during the 90-day

period under paragraph (3) exceeds the number of licenses

available for that county, then the board shall randomly

select from the pool of valid applications received and

approve the applications of the randomly selected applicants,

up to the county quota.

§ 5515. License or permit prohibition.

The following apply:

(1) The board shall be prohibited from granting a

license under this part to any applicant who has been

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convicted of a gambling-related felony offense in any

jurisdiction. The board shall determine, in the board's sole

discretion, whether a felony offense is gambling-related.

(2) For purposes of this section, a felony offense is

any of the following:

(i) An offense classified as a felony or punishable

under the laws of this Commonwealth by imprisonment for

more than five years.

(ii) An offense which, under the laws of another

jurisdiction, is punishable by imprisonment for more than

five years.

(iii) An offense under the laws of another

jurisdiction which, if committed in this Commonwealth,

would be subject to imprisonment for more than five

years.

(3) The board shall be prohibited from issuing a skill

gaming establishment license if issuing such license would

result in a county quota being exceeded.

§ 5516. Issuance and renewal.

(a) Issuance.--

(1) In addition to any other criteria provided under

this part, any terminal operator licensee, skill gaming

establishment, manufacturer licensee, gaming employee, gaming

manager, key employee, principal or other person that the

board approves as qualified to receive a license, permit or

other authorization under this part shall be issued a license

upon the payment of a fee required in section 6101 (relating

to fees) and upon the fulfillment of conditions required by

the board or provided for in this part.

(2) Nothing contained in this part is intended or shall

20250SB0756PN0796 - 114 -

be construed to create an entitlement to a license or other

authorization by a person.

(b) Renewal.--

(1) A license issued under this part unless otherwise

provided shall be subject to renewal every five years.

(2) The application for renewal of a license or permit,

unless otherwise provided, shall be submitted at least 180

days prior to the expiration of the permit or license and

shall include an update of the information contained in the

initial application and any prior renewal applications and

the payment of any renewal fee required by section 6101.

(3) Nothing in this subsection shall be construed to

relieve a licensee of the affirmative duty to notify the

board of a change relating to the status of its license or

permit or to other information contained in the application

materials on file with the board.

(1) In addition to other sanctions the board may impose

under this part, the board may at its discretion suspend,

revoke or deny renewal of a license issued under this part if

the board receives information from any source that the

applicant or any of its officers, directors, owners or key

employees is in violation of any provision of this part, that

the applicant has furnished the board with false or

misleading information or that the information contained in

the applicant's initial application or renewal application is

no longer true and correct such that the applicant is no

longer eligible.

(2) In the event of a revocation or failure to renew,

the licensee's authorization to conduct the previously

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approved activity shall immediately cease the activity and

all fees paid in connection with the license shall be

forfeited.

(3) In the event of a suspension, the applicant's

authorization to conduct the previously approved activity

shall immediately cease until the board has notified the

applicant that the suspension is no longer in effect.

(d) Nontransferability of licenses.--

(1) A license issued by the board is a grant of the

privilege to conduct a business in this Commonwealth.

(2) Except as permitted by section 5517 (relating to

change in ownership or control of terminal operator

licensee), a license granted or renewed under this part may

not be sold, transferred or assigned to another person or

location.

(3) A licensee may not pledge or otherwise grant a

security interest in or lien on the license.

(4) The board has the sole discretion to issue, renew,

condition or deny the issuance of a license based upon the

requirements of this part.

(5) Nothing contained in this part is intended or shall

be construed to create in any person an entitlement to a

license.

§ 5517. Change in ownership or control of terminal operator

licensee.

(a) Notification and approval.--

(1) A terminal operator licensee shall promptly notify

the board of a proposed or contemplated change of ownership

of the terminal operator licensee by a person or group of

persons acting in concert which involves any of the

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following:

(i) More than 5% of a terminal operator licensee's

securities or other ownership interests.

(ii) More than 5% of the securities or other

ownership interests of a corporation or other form of

business entity that owns directly or indirectly at least

20% of the voting or other securities or other ownership

interests of the terminal operator licensee.

(iii) The sale of all or substantially all of a

terminal operator licensee's assets.

(iv) Any other transaction or occurrence deemed by

the board to be relevant to license qualifications.

(2) (i) Notwithstanding the provisions of paragraph

(1), a terminal operator licensee shall not be required

to notify the board of an acquisition by an institutional

investor under paragraph (1)(i) or (ii) if the

institutional investor holds less than 10% of the

securities or other ownership interests referred to in

paragraph (1)(i) or (ii), the securities or interests are

publicly traded securities and its holdings of the

securities were purchased for investment purposes only

and the institutional investor files with the board a

certified statement to the effect that it has no

intention of influencing or affecting, directly or

indirectly, the affairs of the licensee, provided,

however, that it shall be permitted to vote on matters

put to the vote of the outstanding security holders.

(ii) Notice to the board and board approval shall be

required prior to completion of any proposed or

contemplated change of ownership of a terminal operator

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licensee that meets the criteria of this section.

(b) Qualification of purchaser of terminal operator licensee

and change of control.--

(1) The purchaser of all or substantially all of the

assets of a terminal operator licensee shall, if not already

a terminal operator licensee, independently qualify for a

license in accordance with this part and shall pay the

license fee as required by section 6101 (relating to fees).

(2) A change in control of a terminal operator licensee

shall require that the transferee must independently qualify

for a license in accordance with this part, and the

transferee shall pay a new license fee as required by section

6101, except as otherwise required by the board under this

section.

(3) The new license fee shall be paid upon the

assignment and actual change of control or ownership of the

terminal operator license.

section, a change in control of a terminal operator licensee

shall mean the acquisition by a person or group of persons

acting in concert of more than 20% of a terminal operator

licensee's securities or other ownership interests, with the

exception of any ownership interest of the person that existed

at the time of initial licensing and payment of the initial

license fee, or more than 20% of the securities or other

ownership interests of a corporation or other form of business

entity that owns directly or indirectly at least 20% of the

voting or other securities or other ownership interests of the

terminal operator licensee.

(d) Fee reduction.--The board may in its discretion

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eliminate the need for qualification or proportionately reduce,

but not eliminate, the new license fee otherwise required under

this section in connection with a change of control of a

terminal operator licensee, depending upon the type of

transaction, the relevant ownership interests and changes to the

interests resulting from the transaction and other

considerations deemed relevant by the board.

(e) License revocation.--Failure to comply with this section

may cause the license issued under this part to be revoked or

suspended by the board unless the purchase of the assets or the

change in control that meets the criteria of this section has

been independently qualified in advance by the board and any

required license fee has been paid.

§ 5518. Skill gaming accounting controls and audits.

(a) Approval.--Except as otherwise provided by this part, a

terminal operator license applicant shall, in addition to

obtaining a terminal operator license, obtain approval from the

board in consultation with the department of its internal

control systems and audit protocols prior to the installation

and operation of skill gaming terminals at licensed

establishments.

(b) Minimum requirements.--At a minimum, the applicant's

proposed internal controls and audit protocols shall:

(1) Safeguard its assets and revenues, including the

recording of cash and cash equivalents and evidences of

indebtedness related to the skill gaming terminals.

(2) Provide for reliable records, accounts and reports

of a financial event that occurs in the operation of a skill

gaming terminal, including reports to the board related to

the skill gaming terminals.

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(3) Ensure that each skill gaming terminal directly

provides or communicates all required activities and

financial details to the central control computer system as

set by the board and the department.

(4) Provide for accurate and reliable financial records.

(5) Ensure that a financial event that occurs in the

operation of a skill gaming terminal is performed only in

accordance with the management's general or specific

authorization, as approved by the board.

(6) Ensure that a financial event that occurs in the

operation of a skill gaming terminal is recorded adequately

to permit proper and timely reporting of gross revenue and

the calculation thereof and of fees and taxes and to maintain

accountability for assets.

(7) Ensure that access to assets is permitted only in

accordance with management's specific authorization, as

approved by the board.

(8) Ensure that recorded accountability for assets is

compared with actual assets at intervals as required by the

board and appropriate action is taken with respect to

discrepancies.

(9) Ensure that all functions, duties and

responsibilities are appropriately segregated and performed

in accordance with sound financial practices by competent,

qualified personnel.

(10) Meet any other requirement of the board or the

department.

shall submit to the board and department, in such manner as the

board requires, a description of its administrative and

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accounting procedures in detail, including its written system of

internal control. The written system of internal control shall

include:

(1) Records of direct and indirect ownership in the

proposed terminal operator licensee, its affiliate,

intermediary, subsidiary or holding company.

(2) An organizational chart depicting appropriate

segregation of employee functions and responsibilities.

(3) A description of the duties and responsibilities of

each employee position shown on the organizational chart.

(4) A detailed narrative description of the

administrative and accounting procedures designed to satisfy

the requirements of this section.

(5) Record retention policy.

(6) Procedure to ensure that assets are safeguarded,

including mandatory count procedures.

(7) A statement signed by the chief financial officer of

the terminal operator license applicant or other competent

person and the chief executive officer of the terminal

operator license applicant or other competent person

attesting that the officer believes, in good faith, that the

system satisfies the requirements of this section.

(8) Other items that the board or department may require

in its discretion.

§ 5519. Multiple licenses prohibited.

(a) Manufacturer restriction.--A manufacturer licensee under

this part may not hold an establishment license under this part

or a terminal operator license under this part, and may not own,

manage or control any establishment licensee or terminal

operator licensee.

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(b) (Reserved).

licensee under this part may not hold an establishment license

under this part or a manufacturer license under this part, and

may not own, manage or control a terminal operator licensee or

an establishment licensee.

(d) Establishment restriction.--An establishment licensee

under this part may not hold a manufacturer license under this

part or terminal operator license under this part, and may not

own, manage or control a manufacturer licensee or a terminal

operator licensee.

(e) Existing licenses.--Nothing in this part shall be

construed to prohibit a person or entity that has been approved

by the board for licensure under Part II (relating to gaming) or

III (relating to video gaming) from applying for and receiving a

license under this part.

CHAPTER 57

OPERATION

Sec.

5701. Testing and certification of terminals.

5702. Skill gaming limitations.

5703. (Reserved).

5704. Terminal placement agreements.

5705. Duties of licensees.

5706. Compulsive and problem gambling.

§ 5701. Testing and certification of terminals.

(a) Requirement for testing.--A skill gaming terminal or

redemption terminal or associated equipment may not be made

available for use in this Commonwealth prior to being tested and

certified by the board in accordance with this section.

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(b) Skill gaming terminal specifications.--Skill gaming

terminals shall be tested and certified to meet the following

specifications:

(1) The skill gaming terminal shall have the ability to

be linked to the central control computer.

(2) The skill gaming terminal shall be marked with an

irremovable identification plate that is placed in a

conspicuous location on the exterior of the skill gaming

terminal. The identification plate shall contain the name of

the manufacturer licensee and the serial and model numbers of

the skill gaming terminal.

(3) The skill gaming terminal shall prominently display

the rules of play either on the skill gaming terminal face or

screen.

(4) The skill gaming terminal may not have the ability

to dispense cash, tokens or anything of value, except

redemption tickets which shall only be exchangeable for cash

at a redemption terminal or reinserted into another skill

gaming terminal located in the same skill gaming area as the

skill gaming terminal.

(5) The cost of a credit shall only be 1¢, 5¢, 10¢ or

25¢.

(6) The maximum wager per individual game shall not

exceed $5.

(7) The maximum prize per individual game shall not

exceed $1,000.

(8) The skill gaming terminal shall be designed and

manufactured with total accountability to include gross

proceeds, net profits, winning percentages and other

information the board requires.

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(9) Any portion or phase of a game offered by a skill

gaming terminal that is predominantly based on chance shall

pay out a minimum of 85% of the amount wagered for that

portion or phase of the game.

(10) Other specifications the board requires.

terminals shall be tested and certified to meet the following

specifications:

(1) The redemption terminal shall be marked with an

irremovable identification plate that is placed in a

conspicuous location on the exterior of the redemption

terminal. The identification plate shall contain the name of

the manufacturer licensee and the serial and model numbers of

the redemption terminal.

(2) The redemption terminal shall only accept redemption

tickets from skill gaming terminals located in the same skill

gaming area.

(3) The redemption terminal shall be designed and

manufactured with total accountability to record information

the board requires.

(4) Other specifications the board requires.

(d) Private testing.--The board may, in its discretion, rely

upon the certification of a skill gaming terminal or redemption

terminal that has met the testing and certification standards of

one or more board-approved independent private testing and

certification facilities.

(e) Testing and certification fee.--

(1) A fee for the testing and certification of a skill

gaming terminal or redemption terminal shall be paid by the

manufacturer licensee submitting the terminal, which fee

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shall be an amount established by the board according to a

schedule adopted by the board.

(2) Fees established by the board shall be exempt from

any fee limitation contained in section 4101 (relating to

fees).

(f) Central control computer compatibility.--The board shall

ensure that all skill gaming terminals certified and approved

for use in this Commonwealth are compatible and comply with the

central control computer and protocol specifications approved by

the department.

§ 5702. Skill gaming limitations.

(a) Establishment licensee limitations.--An establishment

licensee may offer skill gaming terminals for play within its

premises, subject to the following:

(1) No more than two skill gaming terminals may be

placed on the premises of an establishment licensee that

meets either of the following:

(i) a location authorized to sell Pennsylvania

Lottery tickets or shares under the act of August 26,

1971 (P.L.351, No.91), known as the State Lottery Law; or

(ii) is a licensed premises approved by the

Pennsylvania Liquor Control Board for the sale of liquor,

alcohol or malt or brewed beverages under any of the

following license categories, limited to licenses in

either active or safekeeping status:

(A) Brewery.

(B) Brewery pub.

(D) Hotel (liquor).

(E) Hotel (malt).

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(F) Restaurant.

(G) Distributor (malt).

(H) Importing distributor (malt).

(I) Eating place retail dispenser (malt).

(2) No more than four skill gaming terminals may be

placed on the premises of an establishment licensee that is a

licensed premises approved by the Pennsylvania Liquor Control

Board for the sale of liquor, alcohol or malt or brewed

beverages under any of the following license categories,

limited to licenses in either active or safekeeping status:

(i) Catering club (liquor).

(ii) Club (liquor).

(iii) Club (malt).

(3) Redemption tickets shall only be exchanged for cash

through a redemption terminal or reinserted into another

skill gaming terminal in the same skill gaming area or as

otherwise authorized by the board in the event of a failure

or malfunction in a redemption terminal, and at least one

redemption terminal shall be located in the skill gaming

area.

(4) Skill gaming terminals located on the premises of

the establishment licensee shall be placed and operated by a

terminal operator licensee pursuant to a terminal placement

agreement.

(5) The skill gaming area shall be easily seen and

observed by at least one employee of the establishment

licensee.

(6) The skill gaming area shall, at all times, be

monitored through video surveillance.

(7) No establishment licensee may provide an incentive.

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(8) No minor shall be permitted to play a skill gaming

terminal or enter the skill gaming area.

(9) No visibly intoxicated person shall be permitted to

play a skill gaming terminal.

(10) No establishment licensee may extend credit or

accept a credit card or debit card for play of a skill gaming

terminal.

(11) No establishment licensee may make structural

alterations or significant renovations to a skill gaming area

unless the establishment licensee has notified the terminal

operator licensee and obtained prior approval from the board.

(12) No establishment licensee may move or disconnect a

skill gaming terminal or redemption terminal from its power

source or from the central control computer after

installation by a terminal operator licensee.

(b) Terminal operator licensee limitations.--A terminal

operator licensee may place and operate skill gaming terminals

on the premises of an establishment licensee, subject to the

following:

(1) Redemption tickets shall only be exchanged for cash

through a redemption terminal located within the same skill

gaming area or reinserted into another skill gaming terminal

located in the same skill gaming area as the skill gaming

terminal.

(2) Skill gaming terminals located on the premises of

the establishment licensee shall be placed and operated

pursuant to a terminal placement agreement.

(3) No terminal operator licensee may provide an

incentive.

(4) No terminal operator licensee may extend credit or

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accept a credit card or debit card for play of a skill gaming

terminal.

(5) No terminal operator licensee may give or offer to

give, directly or indirectly, any type of inducement to a

skill gaming establishment to secure or maintain a terminal

placement agreement.

(6) A terminal operator licensee shall only operate,

install or otherwise make available for public use a skill

gaming terminal or redemption terminal that has been obtained

from a manufacturer licensee.

(7) No terminal operator licensee may make structural

alterations or significant renovations to a skill gaming area

unless the terminal operator licensee has notified the

establishment licensee and obtained prior approval from the

board.

(8) No terminal operator licensee may move a skill

gaming terminal or redemption terminal after installation

unless prior approval is obtained from the board.

(9) An establishment licensee must employ at least one

gaming manager.

§ 5703. (Reserved).

§ 5704. Terminal placement agreements.

(a) Requirement for agreement.--A terminal operator licensee

may not place and operate skill gaming terminals on the premises

of an establishment licensee unless pursuant to a terminal

placement agreement approved by the board and executed no less

than 180 days after the effective date of this subsection.

Approval shall be presented upon connection of one or more skill

gaming terminals at the establishment licensee to the central

control computer.

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(b) Form of agreement.--The board shall establish through

regulation minimum standards for terminal placement agreements.

shall be valid for a minimum 24-month term but shall not exceed

a 60-month term.

(d) Provisions required.--A terminal placement agreement

shall include a provision that:

(1) Renders the agreement invalid if either the terminal

operator license or terminal operator application or the

establishment license or establishment licensee application

is denied, revoked, not renewed, withdrawn or surrendered.

(2) Identifies who solicited the terminal placement

agreement on behalf of a terminal operator licensee or

applicant.

(e) Parties to agreement.--Only an establishment licensee or

applicant may sign or agree to sign a terminal placement

agreement with an applicant for a terminal operator license or a

terminal operator licensee.

(f) Void agreements.--An agreement entered into by an

eligible skill gaming establishment prior to 180 days after the

effective date of this subsection with a person for the

placement, operation, service or maintenance of skill gaming

terminals, including an agreement granting a person the right to

enter into an agreement or match any offer made after the

effective date of this subsection, shall be void and may not be

approved by the board.

(g) Transferability of agreements.--A terminal placement

agreement may not be transferred or assigned unless the person

making the assignment is either a terminal operator applicant or

terminal operator licensee and the person receiving the

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assignment of the terminal placement agreement is either a

terminal operator applicant or terminal operator licensee under

this chapter.

§ 5705. Duties of licensees.

A person issued a license under this part shall:

(1) Provide assistance or information required by the

board, the bureau, the department or law enforcement, and

cooperate in inquiries, investigations and hearings.

(2) Consent to inspections, searches and seizures.

(3) Inform the board of actions that the person believes

would constitute a violation of this part.

(4) Inform the board of arrests for violations of

offenses enumerated under 18 Pa.C.S. (relating to crimes and

offenses).

(5) Report illegal or unlicensed games or devices to the

board and to law enforcement.

§ 5706. Compulsive and problem gambling.

(a) Required posting.--

(1) An establishment licensee shall conspicuously post

signs similar to the following statement:

If you or someone you know has a gambling problem,

help is available. Call (toll-free telephone number)

or text (toll-free telephone number).

(2) At least one sign shall be posted within the skill

gaming area and at least one sign shall be posted within five

feet of each automated teller machine located within the

establishment licensee's premises, if applicable.

(b) Toll-free telephone number.--The toll-free telephone

number required to be posted in subsection (a) shall be the same

number maintained by the Department of Drug and Alcohol Programs

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or successor agency under section 5310 (relating to Department

of Drug and Alcohol Programs or successor agency).

(1) An establishment licensee shall have available on

the premises access to materials regarding compulsive and

problem gambling assistance.

(2) The available materials required by paragraph (1)

shall be a uniform, Statewide handout developed by the board

in consultation with the Department of Drug and Alcohol

Programs or successor agency.

(3) The available materials required by paragraph (1)

shall be displayed conspicuously at least within the skill

gaming area.

(d) Mandatory training.--

(1) The board's Office of Compulsive and Problem

Gambling, in consultation with the Department of Drug and

Alcohol Programs or successor agency, shall develop a

mandatory training program for employees and management of an

establishment licensee who oversee the establishment

licensee's skill gaming area. The training program shall

address responsible gaming and other compulsive and problem

gambling issues related to skill gaming terminals.

(2) The board shall establish a fee to cover the cost of

the mandatory training program.

(e) Penalty.--An establishment licensee that fails to

fulfill the requirements of subsection (a), (b), (c) or (d)

shall be assessed by the board an administrative penalty in an

amount established by the board in its discretion, and may have

its establishment license suspended.

CHAPTER 59

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ENFORCEMENT

Sec.

5901. Exclusion or ejection of certain persons.

5902. Repeat offenders.

5903. Self-exclusion.

5904. Investigations and enforcement.

5905. Prohibited acts and penalties.

5906. Report of suspicious transactions.

5907. Additional authority.

5908. Detention.

§ 5901. Exclusion or ejection of certain persons.

(a) Exclusion requirement.--The board shall by regulation

provide for the establishment of a list of individuals who are

to be excluded or ejected from the skill gaming area of an

establishment licensee. The provisions shall define the

standards for exclusion and shall include standards relating to

individuals who are career or professional offenders as defined

by regulations of the board or whose presence in a skill gaming

area would, in the opinion of the board, be inimical to the

interest of the Commonwealth or of licensed skill gaming in this

Commonwealth, or both.

(b) Categories to be defined.--The board shall promulgate

regulations with definitions establishing categories of

individuals who shall be excluded or ejected under this section,

including cheats and persons whose privileges for licensure,

certification, permit or registration have been revoked.

origin or ancestry or sex shall not be a reason for placing the

name of a person upon a list under this section.

(d) Prevention of access.--The board shall, in consultation

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with terminal operator licensees and establishment licensees,

develop policies and procedures to reasonably prevent

individuals on the list required by this section from entering a

skill gaming area.

(e) Sanctions.--The board may impose sanctions upon an

establishment licensee in accordance with this part if the

establishment licensee knowingly fails to implement the policies

and procedures established by the board under subsection (d).

(f) List not all-inclusive.--A list compiled by the board

under this section shall not be deemed an all-inclusive list,

and an establishment licensee shall keep from the skill gaming

area individuals known to the establishment licensee to be

within the classifications declared in this section and the

regulations promulgated under this section whose presence in a

skill gaming area would be inimical to the interest of the

Commonwealth or of licensed skill gaming in this Commonwealth,

or both, as defined in standards established by the board.

(g) Notice.--If the bureau decides to place the name of a

person on a list under this section, the bureau shall serve

notice of the decision to the person by personal service or

certified mail at the last known address of the person. The

notice shall inform the person of the right to request a hearing

under subsection (h).

(h) Hearing.--

(1) Within 30 days after receipt of notice under

subsection (g), the person named for exclusion or ejection

may demand a hearing before the board, at which hearing the

bureau must demonstrate that the person named for exclusion

or ejection satisfies the criteria for exclusion or ejection

established by this section and the board's regulations.

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(2) Failure of the person to demand a hearing within 30

days after service shall be deemed an admission of all

matters and facts alleged in the bureau's notice and shall

preclude the person from having an administrative hearing,

but shall in no way affect the right to judicial review as

provided in this section.

(i) Review.--

(1) If, upon completion of a hearing on the notice of

exclusion or ejection, the board determines that placement of

the name of the person on the exclusion or ejection list is

appropriate, the board shall make and enter an order to that

effect.

(2) The order shall be subject to review by Commonwealth

Court in accordance with the rules of court.

§ 5902. Repeat offenders.

(a) Discretion to exclude or eject.--An establishment

licensee may exclude or eject from the establishment licensee's

skill gaming area or premises an individual who is known to have

been convicted of a misdemeanor or felony committed in or on the

premises of a licensed establishment.

(b) Construction.--Nothing in this section or in any other

law of this Commonwealth shall be construed to limit the right

of an establishment licensee to exercise its common law right to

exclude or eject permanently from its skill gaming area or

premises an individual who:

(1) disrupts the operations of its premises;

(2) threatens the security of its premises or its

occupants; or

(3) is disorderly or intoxicated.

§ 5903. Self-exclusion.

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(a) Establishment of list.--

(1) The board shall provide by regulation for the

establishment of a list of individuals self-excluded from

skill gaming activities within specific establishment

licensees or establishment licensees in geographic areas of

the Commonwealth.

(2) An individual may request placement on the list of

self-excluded individuals by:

(i) acknowledging in a manner to be established by

the board that the individual is a problem gambler;

(ii) agreeing that, during any period of voluntary

exclusion, the individual may not collect any winnings or

recover any losses resulting from any skill gaming

activity within establishment licensees and that

individual may be subject to arrest for trespass; and

(iii) agreeing to another condition established by

the board.

(b) Regulations.--The regulations of the board shall

establish:

(1) Procedures for placement on and removal from the

list of a self-excluded individual.

(2) Procedures for the transmittal to establishment

licensees of identifying information concerning a self-

excluded individual and shall require establishment licensees

to establish reasonable procedures designed at a minimum to

prevent entry of a self-excluded individual into the skill

gaming area of an establishment licensee, provided that the

board may not require skill gaming terminals to be equipped

with identification card-reading devices or require

establishment licensees to purchase identification card-

20250SB0756PN0796 - 135 -

reading devices.

(3) Procedures for the transmittal to terminal operator

licensees of identifying information concerning a self-

excluded individual and shall require terminal operator

licensees to establish procedures to remove self-excluded

individuals from customer loyalty or reward card programs and

targeted mailings or other forms of advertising or

promotions.

thereof shall not be liable to a self-excluded individual or to

another party in a judicial proceeding for harm, monetary or

otherwise, which may arise as a result of:

(1) the failure of the establishment licensee to

withhold skill gaming privileges from or restore skill gaming

privileges to the self-excluded individual; or

(2) otherwise permitting or not permitting the self-

excluded individual to engage in skill gaming activity within

the establishment licensee's premises while on the list of

self-excluded individuals.

(d) Nondisclosure.--The board's list of self-excluded

individuals shall not be open to public inspection.

§ 5904. Investigations and enforcement.

(a) Bureau of Investigation and Enforcement, Skill Gaming.--

The board shall establish the Skill Gaming Division within the

bureau, which shall have the following powers and duties:

(1) Enforce the provisions of this part.

(2) Investigate and review applicants and applications

for a license or registration. The bureau shall be prohibited

from disclosing any portion of a background investigation

report to a member of the board prior to the submission of

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the bureau's final background investigation report relating

to the applicant's suitability for licensure to the board.

The Skill Gaming Division of the Office of Enforcement

Counsel shall prepare the final background investigation

report for inclusion in a final report relating to the

applicant's suitability for licensure.

(3) Investigate licensees, registrants and other persons

regulated by the board under this part for noncriminal

violations, including potential violations referred to the

bureau by the board or other person.

(4) Monitor skill gaming operations to ensure compliance

with this part.

(5) Inspect and examine licensed entities. Inspections

may include the review and reproduction of documents or

records.

(6) Conduct reviews of a licensed entity as necessary to

ensure compliance with this part. A review may include the

review of accounting, administrative and financial records,

management control systems, procedures and other records

utilized by a licensed entity.

(7) Refer possible criminal violations related to this

title or 18 Pa.C.S. (relating to crimes and offenses) to law

enforcement. The bureau shall not have the power of arrest.

(8) Cooperate in the investigation and prosecution of

criminal violations related to this part.

(9) Be a criminal justice agency under 18 Pa.C.S. Ch. 91

(relating to criminal history record information).

(b) Office of Enforcement Counsel, Skill Gaming Division.--

The board shall establish the Skill Gaming Division within the

Office of Enforcement Counsel, which shall act as the prosecutor

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in all noncriminal enforcement actions initiated by the bureau

under this part and shall have the following powers and duties:

(1) Advise the bureau on all matters related to skill

gaming, including the granting of licenses or registrations,

the conduct of background investigations, audits and

inspections and the investigation of potential violations of

this part.

(2) File on behalf of the bureau recommendations and

objections relating to the issuance of licenses and

registrations under this part.

(3) Initiate, in its sole discretion, proceedings for

noncriminal violations of this part by filing a complaint or

other pleading with the board.

(1) The department shall at all times have the power of

access to examine and audit equipment and records relating to

all aspects of the operation of skill gaming terminals and

redemption terminals under this part.

(2) Notwithstanding the provisions of section 353(f) of

the act of March 4, 1971 (P.L.6, No.2), known as the Tax

Reform Code of 1971, the department shall supply the board,

the bureau, the Pennsylvania State Police and the Office of

Attorney General with information concerning the status of

delinquent taxes owed by applicants or licensees.

(d) Powers and duties of the Pennsylvania State Police.--The

Pennsylvania State Police shall have the following powers and

duties:

(1) Promptly conduct background investigations on

persons as directed by the board under this part. The

Pennsylvania State Police may contract with other law

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enforcement annuitants to assist in the conduct of

investigations under this paragraph.

(2) Initiate proceedings for criminal violations of this

part.

(3) Provide the board with all information necessary for

all actions under this part for all proceedings involving

criminal enforcement of this part.

(4) Inspect, when appropriate, a licensee's person and

personal effects present within an establishment licensee's

premises under this part while that licensee is present.

(5) Enforce the criminal provisions of this part and all

other criminal laws of this Commonwealth.

(6) Fingerprint applicants.

(7) Exchange fingerprint data with and receive national

criminal history record information from the Federal Bureau

of Investigation for use in background investigations

performed by the bureau under this part.

(8) Receive and take appropriate action on any referral

from the bureau relating to criminal conduct.

(9) Conduct administrative inspections on the premises

of an establishment licensee at times, under circumstances

and to the extent the bureau determines to ensure compliance

with this part and the regulations of the board and, in the

course of inspections, review and make copies of all

documents and records required by the inspection through

onsite observation and other reasonable means to assure

compliance with this part and regulations promulgated

thereunder.

(10) Conduct audits or verification of information of

skill gaming terminal operations at times, under

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circumstances and to the extent as the bureau determines.

This paragraph includes the review of accounting,

administrative and financial records and management control

systems, procedures and records utilized by a terminal

operator licensee.

(11) Report violations of this part to the bureau that

are found during the normal course of duties required under

any law of this Commonwealth.

(e) Powers and duties of Attorney General.--The gaming unit

within the Office of Attorney General shall investigate and

institute criminal proceedings as authorized under subsection

(f).

(f) Criminal action.--

(1) County district attorneys shall have the authority

to investigate and to institute criminal proceedings for a

violation of this part.

(2) In addition to the authority conferred upon the

Attorney General under the act of October 15, 1980 (P.L.950,

No.164), known as the Commonwealth Attorneys Act, the

Attorney General shall have the authority to investigate and,

following consultation with the appropriate district

attorney, to institute criminal proceedings for a violation

of this part or under Title 18.

(3) A person charged with a violation of this part by

the Attorney General shall not have standing to challenge the

authority of the Attorney General to investigate or prosecute

the case, and, if any such challenge is made, the challenge

shall be dismissed and no relief shall be available in the

courts of this Commonwealth to the person making the

challenge.

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(g) Regulatory action.--Nothing contained in subsection (e)

shall be construed to limit the existing regulatory or

investigative authority of an agency or the Commonwealth whose

functions relate to persons or matters within the scope of this

part.

(h) Inspection, seizure and warrants.--

(1) The board, the bureau, the department and the

Pennsylvania State Police shall have the authority without

notice and without warrant to do all of the following in the

performance of their duties under this part:

(i) Inspect and examine all premises where:

(A) skill gaming operations are conducted;

(B) skill gaming terminals, redemption terminals

and associated equipment are manufactured, sold,

distributed or serviced; and

maintained.

(ii) Inspect all equipment and supplies in, about,

upon or around premises referred to in subparagraph (i).

(iii) Seize, summarily remove and impound equipment

and supplies from premises referred to in subparagraph

(i) for the purposes of examination and inspection.

(iv) Inspect, examine and audit all books, records

and documents pertaining to a terminal operator

licensee's skill gaming operation.

(v) Seize, impound or assume physical control of any

book, record, ledger or device related to skill gaming

operations or the skill gaming terminals or redemption

terminals.

(2) The provisions of paragraph (1) shall not be

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construed to limit warrantless inspections, except in

accordance with constitutional requirements.

(3) To further effectuate the purposes of this part, the

bureau and the Pennsylvania State Police may obtain

administrative warrants for the inspection and seizure of

property possessed, controlled, bailed or otherwise held by

an applicant, licensee, intermediary, subsidiary, affiliate

or holding company.

(i) Information sharing and enforcement referral.--With

respect to the administration, supervision and enforcement of

this part, the bureau, the department, the Pennsylvania State

Police or the Office of Attorney General may obtain or provide

pertinent information regarding applicants or licensees from or

to law enforcement entities or gaming authorities of the

Commonwealth and other domestic, foreign or federally approved

jurisdictions, including the Federal Bureau of Investigation,

and may transmit the information to each other electronically.

§ 5905. Prohibited acts and penalties.

(a) Criminal offenses.--

(1) The provisions of 18 Pa.C.S. § 4902 (relating to

perjury), 4903 (relating to false swearing) or 4904 (relating

to unsworn falsification to authorities) shall apply to a

person providing information or making a statement, whether

written or oral, to the board, the bureau, the department,

the Pennsylvania State Police or the Office of Attorney

General, as required by this part.

(2) It shall be unlawful for a person to willfully:

(i) fail to report, pay or truthfully account for

and pay over a license fee, authorization fee, tax or

assessment imposed under this part; or

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(ii) attempt in any manner to evade or defeat a

license fee, authorization fee, tax or assessment imposed

under this part.

(3) It shall be unlawful for a licensed entity, gaming

employee, key employee or any other person to permit a skill

gaming terminal to be operated, transported, repaired or

opened on the premises of an establishment licensee by a

person other than a person licensed or permitted by the board

under this part.

(4) It shall be unlawful for a licensed entity or other

person to manufacture, supply or place skill gaming

terminals, redemption terminals or associated equipment into

play or display skill gaming terminals, redemption terminals

or associated equipment on the premises of an establishment

licensee without the authority of the board.

(5) It shall be unlawful for a licensed entity or other

person to manufacture, supply, operate, carry on or expose

for play a skill gaming terminal or associated equipment

after the person's license has expired or failed to be

renewed in accordance with this part.

(6) It shall be unlawful for an individual while on the

premises of an establishment licensee to knowingly use

currency other than lawful coin or legal tender of the United

States or a coin not of the same denomination as the coin

intended to be used in the skill gaming terminal or use

counterfeit or altered redemption tickets with the intent to

cheat or defraud a terminal operator licensee or the

Commonwealth or damage the skill gaming terminal or

redemption terminal.

(7) (i) Except as specified in subparagraph (ii), it

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shall be unlawful for an individual to use or possess a

cheating or thieving device, counterfeit or altered

billet, ticket, token or similar object accepted by a

skill gaming terminal or counterfeit or altered

redemption ticket on the premises of an establishment

licensee.

(ii) An authorized employee of a licensee or an

employee of the board may possess and use a cheating or

thieving device, counterfeit or altered billet, ticket,

token or similar object accepted by a skill gaming

terminal or counterfeit or altered redemption ticket in

performance of the duties of employment.

(8) (i) Except as specified in subparagraph (ii), it

shall be unlawful for an individual to knowingly possess

or use while on the premises of an establishment licensee

a key or device designed for the purpose of and suitable

for opening or entering a skill gaming terminal or

redemption terminal that is located on the premises of

the establishment licensee.

(ii) An authorized employee of a licensee or a

member of the board may possess and use a device referred

to in subparagraph (i) in the performance of the duties

of employment.

(9) It shall be unlawful for a person or licensed entity

to possess a device, equipment or material which the person

or licensed entity knows has been manufactured, distributed,

sold, tampered with or serviced in violation of this part

with the intent to use the device, equipment or material as

though it had been manufactured, distributed, sold, tampered

with or serviced under this part.

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(10) It shall be unlawful for a person to sell, offer

for sale, represent or pass off as lawful any device,

equipment or material that the person or licensed entity

knows has been manufactured, distributed, sold, tampered with

or serviced in violation of this part.

(11) It shall be unlawful for an individual to work or

be employed in a position the duties of which would require

licensing under this part without first obtaining the

requisite license issued under this part.

(12) It shall be unlawful for a licensed entity to

employ or continue to employ an individual in a position the

duties of which require a license under this part if the

individual:

(i) Is not licensed under this part.

(ii) Is prohibited from accepting employment from a

licensee.

(13) It shall be unlawful for a minor to wager, play or

attempt to play a skill gaming terminal or submit a

redemption ticket into a redemption terminal.

(14) It shall be unlawful for a terminal operator

licensee to require a skill gaming terminal wager to be

greater than the stated minimum wager or greater than the

stated maximum wager.

(15) An individual who engages in conduct prohibited by

18 Pa.C.S. § 6308 (relating to purchase, consumption,

possession or transportation of liquor or malt or brewed

beverages) on the premises of an establishment licensee

commits a nongambling offense.

(16) It shall be unlawful for an individual to claim,

collect or take, or attempt to claim, collect or take, money

20250SB0756PN0796 - 145 -

or anything of value in or from a skill gaming terminal or

redemption terminal with the intent to defraud, or to claim,

collect or take an amount greater than the amount won, or to

manipulate with the intent to cheat, a component of a skill

gaming terminal or redemption terminal in a manner contrary

to the designed and normal operational purpose.

(17) It shall be unlawful for a person to manufacture,

place, offer or play in this Commonwealth an illegal gambling

device as defined under 18 Pa.C.S. § 5513 (relating to

gambling devices, gambling, etc.)

(b) Criminal penalties and fines.--

(1) (i) A person that commits a first offense in

violation of 18 Pa.C.S. § 4902, 4903 or 4904 in

connection with providing information or making any

statement, whether written or oral, to the board, the

bureau, the department, the Pennsylvania State Police,

the Office of Attorney General or a district attorney as

required by this part, commits an offense to be graded in

accordance with the applicable section violated. A person

that is convicted of a second or subsequent violation of

18 Pa.C.S. § 4902, 4903 or 4904 in connection with

providing information or making any statement, whether

written or oral, to the board, the bureau, the

department, the Pennsylvania State Police, the Office of

Attorney General or a district attorney as required by

this part, commits a felony of the second degree.

(ii) A person that violates subsection (a)(2), (3),

(4), (5), (6), (7), (8), (9), (10), (11), (12) or (17)

commits a misdemeanor of the first degree. A person that

is convicted of a second or subsequent violation of

20250SB0756PN0796 - 146 -

subsection (a)(2), (3), (4), (5), (6), (7), (8), (9),

(10), (11), (12) or (17) commits a felony of the second

degree.

(2) (i) For a first violation of subsection (a)(1),

(2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12)

or (17), a person shall be sentenced to pay a fine of:

(A) not less than $75,000 nor more than $150,000

if the person is an individual or establishment

licensee;

(B) not less than $300,000 nor more than

$600,000 if the person is a terminal operator

licensee; or

$300,000 if the person is a licensed manufacturer or

supplier.

(ii) For a second or subsequent violation of

subsection (a)(1), (2), (3), (4), (5), (6), (7), (8),

(9), (10), (11), (12) or (17), a person shall be

sentenced to pay a fine of:

(A) not less than $150,000 nor more than

$300,000 if the person is an individual or

establishment licensee;

(B) not less than $600,000 nor more than

$1,200,000 if the person is a terminal operator

licensee; or

$600,000 if the person is a licensed manufacturer or

supplier.

(3) An individual who commits an offense in violation of

subsection (a)(13) or (14) commits a nongambling summary

20250SB0756PN0796 - 147 -

offense and upon conviction of a first offense shall be

sentenced to pay a fine of not less than $200 nor more than

$1,000. An individual who is convicted of a second or

subsequent offense under subsection (a)(13) or (14) shall be

sentenced to pay a fine of not less than $500 nor more than

$1,500. In addition to the fine imposed, an individual

convicted of an offense under subsection (a)(13) or (14) may

be sentenced to perform a period of community service not to

exceed 40 hours.

(4) An individual who commits an offense in violation of

subsection (a)(16) commits a nongambling offense to be graded

in accordance with 18 Pa.C.S. § 6308 and shall be subject to

the same penalties imposed under 18 Pa.C.S. § 6308 except

that the fine imposed for a violation of subsection (a)(16)

shall be not less than $350 nor more than $1,000.

(1) In addition to any other penalty authorized by law,

the board may impose without limitation the following

sanctions:

(i) Revoke the license of a person convicted of a

criminal offense under this part or regulations

promulgated under this part or committing any other

offense or violation of this part or applicable law that

would otherwise disqualify the person from holding the

license.

(ii) Revoke the license of a person determined to

have violated a provision of this part or regulations

promulgated under this part that would otherwise

disqualify the person from holding the license.

(iii) Revoke the license of a person for willfully

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and knowingly violating or attempting to violate an order

of the board directed to the person.

(iv) Subject to subsection (g), assess

administrative penalties as necessary to punish

violations of this part.

(v) Order restitution of money or property

unlawfully obtained or retained by a licensee.

(vi) Enter cease and desist orders which specify the

conduct which is to be discontinued, altered or

implemented by a licensee.

(vii) Issue letters of reprimand or censure, which

letters shall be made a permanent part of the file of the

licensee so sanctioned.

(2) (i) If the board refuses to issue or renew a

license, suspends or revokes a license, assesses civil

penalties, orders restitution, enters a cease and desist

order or issues a letter of reprimand or censure, the

board shall provide the applicant or licensee with

written notification of its decision, including a

statement of the reasons for its decision, by certified

mail within 10 business days of the decision of the

board.

(ii) The applicant or licensee shall have the right

to appeal the decision in accordance with 2 Pa.C.S. Chs.

5 Subch. A (relating to practice and procedure of

Commonwealth agencies) and 7 Subch. A (relating to

judicial review of Commonwealth agency action).

(d) Aiding and abetting.--A person who aids, abets,

counsels, commands, induces, procures or causes another person

to violate this part shall be subject to all sanctions and

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penalties, both civil and criminal, provided under this part.

(e) Continuing offenses.--A violation of this part that is

determined to be an offense of a continuing nature shall be

deemed to be a separate offense on each event or day during

which the violation occurs.

(f) Property subject to seizure, confiscation, destruction

or forfeiture.--

(1) Any equipment, device or apparatus, money, material,

gaming proceeds or substituted proceeds or real or personal

property used, obtained or received or an attempt to use,

obtain or receive the device, apparatus, money, material,

proceeds or real or personal property in violation of this

part or in violation of 18 Pa.C.S. § 5513 shall be subject to

the provisions of 42 Pa.C.S. §§ 5803(a), (b), (b.1), (c),

(d), (e), (f), (f.1), (j), (k), (k.1) and (l) (relating to

asset forfeiture), 5805 (relating to forfeiture procedure),

5806 (relating to motion for return of property), 5807

(relating to restrictions on use), 5807.1 (relating to

prohibition on adoptive seizures) and 5808 (relating to

exceptions).

(2) Cash or proceeds of property subject to forfeiture

under this section shall be distributed as follows:

(i) Fifty percent to the local law enforcement

authority that seized the cash or proceeds.

(ii) Fifty percent to the local district attorney

office in the county in which the seized property was

located.

(g) Penalty limitation.--

(1) Administrative penalties assessed by the board on an

establishment licensee shall not exceed $5,000 for each

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noncriminal violation of this part.

(2) When imposing an administrative penalty on an

establishment licensee for a noncriminal violation of this

part or Part III (relating to video gaming), the board shall

take into consideration the establishment licensee's annual

taxable income and whether the penalty amount would cause the

establishment licensee to cease nonskill gaming operations.

(h) Deposit of fines.--Fines imposed and collected by the

board under subsection (c) shall be deposited into the General

Fund.

§ 5906. Report of suspicious transactions.

(a) Duty.--An establishment licensee or terminal operator

licensee or a person acting on behalf of an establishment

licensee or terminal operator licensee shall, on a form and in a

manner as required by the bureau, notify the bureau of a

suspicious transaction.

(b) Failure to report.--

(1) A person that is required to file a report of a

suspicious transaction under this section and knowingly fails

to file the report or that knowingly causes another person

having that responsibility to fail to file the report commits

a misdemeanor of the third degree.

(2) A person required to file a report of a suspicious

transaction under this section and fails to file the report

or a person that causes another person required under this

section to file a report and fails to file the report shall

be strictly liable for the person's actions and may be

subject to sanctions under section 5905(c) (relating to

prohibited acts and penalties).

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reports made under this section for a period of five years. The

bureau shall make the reports available to any Federal or State

law enforcement agency upon written request and without

necessity of subpoena.

(d) Notice prohibited.--

(1) A person that is required to file a report of a

suspicious transaction under this section may not notify an

individual suspected of committing the suspicious transaction

that the transaction has been reported.

(2) A person that violates this subsection commits a

misdemeanor of the third degree and may be subject to

sanctions under section 5905(c).

(e) Immunity.--A person that is required to file a report of

a suspicious transaction under this section and in good faith

makes the report shall not be liable in any civil action brought

by a person for making the report, regardless of whether the

transaction is later determined to be a suspicious transaction.

(f) Sanctions.--

(1) In considering appropriate administrative sanctions

against a person for violating this section, the board shall

consider all of the following:

(i) The risk to the public and to the integrity of

gaming operations created by the conduct of the person.

(ii) The seriousness of the conduct of the person

and whether the conduct was purposeful and with knowledge

that it was in contravention of the provisions of this

part or regulations promulgated under this part.

(iii) Justification or excuse for the conduct by the

person.

(iv) The prior history of the particular licensee or

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person involved with respect to skill gaming terminal

activity.

(v) The corrective action taken by the establishment

licensee or terminal operator licensee to prevent future

misconduct of a like nature from occurring.

(vi) In the case of a monetary penalty, the amount

of the penalty in relation to the severity of the

misconduct and the financial means of the licensee or

person. The board may impose any schedule or terms of

payment of the penalty as it may deem appropriate.

(2) It shall not be a defense to disciplinary action

before the board that a person inadvertently, unintentionally

or unknowingly violated this section. The factors enumerated

under paragraph (1) shall only apply to the degree of the

penalty to be imposed by the board and not to a finding of a

violation itself.

(g) Regulations.--The board shall promulgate regulations to

effectuate the purposes of this section.

§ 5907. Additional authority.

(a) Petition for access to agency information.--

(1) The director of the Office of Enforcement Counsel

within the bureau may petition a court of record having

jurisdiction over information in the possession of an agency

in this Commonwealth or, if there is no court of record,

Commonwealth Court for authorization to review or obtain

information in the possession of an agency in this

Commonwealth by averring specific facts demonstrating that:

(i) The agency has in its possession information

material to a pending investigation or inquiry being

conducted by the bureau under this part.

20250SB0756PN0796 - 153 -

(ii) Disclosure or release of the information is in

the best interest of the Commonwealth.

(2) The petition shall request that the court enter a

rule upon the agency to show cause why the agency should not

be directed to disclose to the bureau, or identified agents

thereof, information in the agency's possession about any

pending matter under the jurisdiction of the bureau under

this part.

(3) If the respondent is a local agency, a copy of a

rule issued under this section shall be provided to the

district attorney of the county in which the local agency is

located and the Office of Attorney General.

(4) Upon request of a local agency, the district

attorney or the Attorney General may elect to enter an

appearance to represent the local agency in the proceedings.

(b) Procedure.--

(1) The filing of a petition under this section and

related proceedings shall be in accordance with court rule,

including issuance as of course.

(2) A party to the proceeding may not disclose the

filing of a petition or answer or the receipt, content or

disposition of a rule or order issued under this section,

without leave of court.

(3) A party to the proceedings may request that the

record be sealed and proceedings be closed. The court shall

grant the request if it is in the best interest of a person

or the Commonwealth to do so.

(1) Following review of the record, the court shall

grant the relief sought by the director of the Office of

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Enforcement Counsel if the court determines that:

(i) The agency has in its possession information

material to the investigation or inquiry.

(ii) Disclosure or release of the information is in

the best interest of the Commonwealth.

(iii) The disclosure or release of the information

is not otherwise prohibited by statute or regulation.

(iv) The disclosure or release of the information

would not inhibit an agency in the performance of the

agency's duties.

(2) If the court grants relief under paragraph (1), the

court shall enter an order authorizing and directing the

information be made available for review in camera.

(d) Release of materials or information.--

(1) If, after an in camera review by the court, the

director of the Office of Enforcement Counsel seeks to obtain

copies of materials in the agency's possession, the court

may, if not otherwise prohibited by statute or regulation,

enter an order that the requested materials be provided.

(2) An order authorizing the release of materials or

other information shall contain direction regarding the

safekeeping and use of the materials or other information

sufficient to satisfy the court that the materials or

information will be sufficiently safeguarded.

(3) In making the determination under paragraph (2), the

court shall consider input of the agency in possession of the

information and input from an agency with which the

information originated concerning a pending investigation or

ongoing matter and the safety of person and property.

(e) Modification of order.--

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(1) If subsequent investigation or inquiry by the bureau

warrants modification of an order entered under this section,

the director of the Office of Enforcement Counsel may

petition to request modification of the order.

(2) Upon the request, the court may modify the order at

any time and in any manner it deems necessary and

appropriate.

(3) The agency named in the original petition shall be

given notice and an opportunity to be heard.

(f) Use of information or materials.--A person who, by any

means authorized by this section, has obtained knowledge of

information or materials solely under this section may use the

information or materials in a manner consistent with any

direction imposed by the court and appropriate to the proper

performance of the person's duties under this part.

(g) Violation.--In addition to the remedies and penalties

provided in this part, a violation of the provisions of this

section may be punished as contempt of court.

(h) Definition.--As used in this section, the term "agency"

shall mean a "Commonwealth agency" or a "local agency" as those

terms are defined in section 102 of the act of February 14, 2008

(P.L.6, No.3), known as the Right-to-Know Law.

§ 5908. Detention.

(a) Reasonable detention.--A peace officer who has probable

cause to believe a criminal violation of this part has occurred

or is occurring on or about an establishment licensee's premises

and who has probable cause to believe a specific individual has

committed or is committing a criminal violation may detain the

individual in a reasonable manner for a reasonable time on the

premises of the establishment licensee to require the suspect to

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identify himself or herself, to verify such identification.

(b) Immunity.--A peace officer shall not be subject to civil

or criminal liability for detention of an individual in

accordance with subsection (a).

CHAPTER 61

REVENUES

Sec.

6101. Fees.

6102. Taxes and assessments.

6103. (Reserved).

6104. Regulatory assessments.

6105. Transfers from Skill Gaming Fund.

§ 6101. Fees.

(a) Application fees.--The following nonrefundable

application fees shall accompany an application for the

following licenses or permits applied for under Chapter 55

(relating to application and licensure):

(1) For a manufacturer license, $50,000.

(2) For a terminal operator license, $25,000.

(3) For an establishment license, $250.

(4) For a key employee or principal license, $500.

(5) For any other authorization authorized by this part,

an amount established by the board, through regulation, which

may not exceed $100.

(b) Initial license and renewal fees.--The following

nonrefundable fees shall be required upon issuance of an initial

license and shall accompany an application for renewal for the

following licenses or permits under Chapter 55:

(1) For a manufacturer license, $4,000,000.

(2) For a terminal operator license, $100,000.

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(3) For an establishment license, an amount equal to

$250 per each skill gaming terminal in operation at the

premises of the establishment licensee.

(4) For a key employee, procurement agent license or

principal license, $2,000.

(5) For any other authorization or license authorized by

this part, an amount established by the board, through

regulation, which may not exceed $500.

increases the total number of skill gaming terminals within the

establishment after submission of the renewal fee required in

subsection (b) shall provide the board with a $1,000 renewal fee

for each additional skill gaming terminal added to the

establishment within 60 days of installation of each additional

skill gaming terminal.

(d) Deposit of fees.--Fees collected under this section

shall be deposited into the General Fund.

§ 6102. Taxes and assessments.

(a) Fund established.--The Skill Gaming Fund is established

in the State Treasury. Money in the Skill Gaming Fund is

appropriated to the department on a continuing basis for the

purposes under subsection (c).

(b) Skill gaming terminal tax and assessments.--

(1) The department shall determine and each terminal

operator licensee shall pay on a bimonthly basis:

(i) A tax of 35% of its gross terminal revenue from

all skill gaming terminals operated by the terminal

operator licensee within this Commonwealth.

(ii) A regulatory assessment established in section

6104 (relating to regulatory assessments) from the

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terminal operator licensee's weekly gross terminal

revenue.

(2) All money owed under this section shall be held in

trust by the terminal operator licensee until the money is

paid or transferred to the Skill Gaming Fund.

(3) Unless otherwise agreed to by the board, a terminal

operator licensee shall establish a separate bank account to

maintain gross terminal revenue until the money is paid or

transferred under this section.

(1) Transfer the tax imposed under subsection (b) to the

Skill Gaming Fund.

(2) (Reserved).

(3) Transfer the regulatory assessment imposed under

subsection (b) in accordance with section 6104.

§ 6103. (Reserved).

§ 6104. Regulatory assessments.

(a) Accounts established.--The State Treasurer shall

establish within the State Treasury an account for each terminal

operator for the deposit of a regulatory assessment amount

required under subsection (b) to recover costs or expenses

incurred by the board, the department, the Pennsylvania State

Police and the Office of Attorney General in carrying out their

powers and duties under this part based upon a budget submitted

by the department under subsection (c).

(b) Bimonthly deposits.--

(1) The department shall determine the appropriate

assessment amount for each terminal operator licensee, which

shall be a percentage assessed on the terminal operator

licensee's bimonthly gross terminal revenue.

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(2) The percentage assessed shall not exceed an amount

equal to the costs or expenses incurred by the board, the

department, the Pennsylvania State Police or the Office of

Attorney General in carrying out their powers and duties

under this part based upon a budget submitted by the

department under subsection (c).

(1) The department shall prepare and annually submit to

the chairperson and minority chairperson of the

Appropriations Committee of the Senate and the chairperson

and minority chairperson of the Appropriations Committee of

the House of Representatives an itemized budget consisting of

amounts to be appropriated out of the accounts established

under this section necessary to administer this part.

(2) As soon as practicable after submitting copies of

the itemized budget, the department shall submit to the

chairperson and minority chairperson of the Appropriations

Committee of the Senate and the chairperson and minority

chairperson of the Appropriations Committee of the House of

Representatives analyses of and recommendations regarding the

itemized budget.

(3) The itemized budget required under paragraph (1)

shall be submitted in conjunction with the budget required to

be submitted under section 1202(b)(28) (relating to general

and specific powers).

(d) Appropriation.--

(1) Costs and expenses may be paid from the accounts

established under subsection (a) only upon appropriation by

the General Assembly.

(2) If the total costs or expenses incurred by the

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board, the department, the Pennsylvania State Police or the

Office of Attorney General exceed the amounts available in

the accounts established under subsection (a), the General

Assembly may appropriate additional amounts to the board, the

department, the Pennsylvania State Police or the Office of

Attorney General from the Skill Gaming Fund.

§ 6105. Transfers from Skill Gaming Fund.

(a) Transfer to Compulsive and Problem Gambling Treatment

Fund.--On June 30, 2026, and on the last day of each fiscal year

thereafter, the State Treasurer shall transfer from the Skill

Gaming Fund an amount equal to 0.002 multiplied by the total

gross terminal revenue of all terminal operator licensees to the

Compulsive and Problem Gambling Treatment Fund established in

section 1509 (relating to compulsive and problem gambling

program).

(b) Transfer to General Fund.--On June 30, 2026, and on the

last day of each fiscal year thereafter, the State Treasurer

shall transfer any balance remaining, less the sum transferred

under subsection (a), in the Skill Gaming Fund to the General

Fund.

CHAPTER 63

ETHICS

Sec.

6301. Board code of conduct.

6302. Additional board restrictions.

6303. Financial and employment interests.

6304. Additional restrictions.

§ 6301. Board code of conduct.

(a) Update required.--The board shall update the

comprehensive code of conduct established under section 1202.1

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(relating to code of conduct) prior to the consideration of a

license, permit or other authorization under this part in order

to avoid a perceived or actual conflict of interest and to

promote public confidence in the integrity and impartiality of

the board as related to skill gaming. At a minimum, the updated

code of conduct adopted under this section shall include

registration of licensed entity representatives under subsection

(b) and the restrictions under subsection (c) as they relate to

skill gaming.

(b) Registration.--

(1) A licensed entity representative shall register with

the board in a manner prescribed by the board. The

registration shall include the name, employer or firm,

business address and business telephone number of both the

licensed entity representative and any licensed entity,

applicant for licensure or other person being represented.

(2) A licensed entity representative shall update the

registration information on an ongoing basis and failure to

do so shall be punishable by the board.

(3) The board shall maintain a registration list that

contains the information required under paragraph (1). The

list shall be available on the board's publicly accessible

internet website.

contained in this part, a member of the board shall:

(1) Not accept a discount, gift, gratuity, compensation,

travel, lodging or other thing of value, directly or

indirectly, from an applicant, licensed entity, affiliate,

subsidiary or intermediary of an applicant or a licensed

entity, registrant or licensed entity representative.

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(2) Disclose and recuse the member's self from a hearing

or other proceeding in which the member's objectivity,

impartiality, integrity or independence of judgment may be

reasonably questioned due to the member's relationship or

association with a party connected to a hearing or proceeding

or a person appearing before the board.

(3) Refrain from financial or business dealings that

would tend to reflect adversely on the member's objectivity,

impartiality or independence of judgment.

(4) (i) Not solicit money for a charitable,

educational, religious, health, fraternal, civic or other

nonprofit entity from an applicant, licensed entity,

party, registrant or licensed entity representative or

from an affiliate, subsidiary, intermediary or holding

company of an applicant, licensed entity, party or

licensed entity representative.

(ii) Subject to the provisions of section 1201(h)

(4.1) (relating to Pennsylvania Gaming Control Board

established), a member may serve as an officer, employee

or member of the governing body of a nonprofit entity and

may attend, make personal contributions to and plan or

preside over the entity's fundraising events.

(iii) A member may permit their name to appear on

the letterhead used for fundraising events if the

letterhead contains only the member's name and position

with the nonprofit entity.

(5) (i) Not meet or engage in discussions with an

applicant, licensed entity, registrant, licensed entity

representative, person who provides goods, property or

services to a terminal operator licensee or another

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person under the jurisdiction of the board unless the

meeting or discussion occurs on the business premises of

the board and is recorded in a log.

(ii) The log shall be posted on the board's publicly

accessible internet website.

(iii) The log must include the date and time of the

meeting or discussion, the names of the participants and

the subjects discussed.

(iv) The provisions of this paragraph shall not

apply to a meeting that considers matters requiring the

physical inspection of the equipment or premises of an

applicant or a licensed entity, if the meeting is entered

in the log.

(6) Avoid impropriety and the appearance of impropriety

at all times and observe standards and conduct that promote

public confidence in the oversight of skill gaming.

(7) Comply with other laws, rules or regulations

relating to the conduct of a member.

§ 6302. Additional board restrictions.

(a) Board restrictions.--The following shall apply to a

board member or employee of the board whose duties substantially

involve licensing, enforcement, development of law, promulgation

of regulations or development of policy relating to gaming under

this part or who has other discretionary authority which may

affect or influence the outcome of an action, proceeding or

decision under this part:

(1) The individual may not, for a period of two years

following termination of employment, accept employment with

or be retained by an applicant or a licensed entity or by an

affiliate, intermediary, subsidiary or holding company of an

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applicant or a licensed entity.

(2) The individual may not, for a period of two years

following termination of employment, appear before the board

in a hearing or proceeding or participate in activity on

behalf of an applicant, licensee or licensed entity or on

behalf of an affiliate, intermediary, subsidiary or holding

company of an applicant, licensee or licensed entity.

(3) (i) An applicant or a licensed entity or an

affiliate, intermediary, subsidiary or holding company of

an applicant or a licensed entity may not, until the

expiration of two years following termination of

employment, employ or retain the individual.

(ii) Violation of this paragraph shall result in

termination of the individual's employment and subject

the violator to section 5905(c) (relating to prohibited

acts and penalties).

(4) (i) A prospective employee who, upon employment,

would be subject to this subsection must, as a condition

of employment, sign an affidavit that the prospective

employee will not violate paragraph (1) or (2).

(ii) If the prospective employee fails to sign the

affidavit, the board shall rescind an offer of employment

and may not employ the individual.

(b) Contractor restrictions.--The following shall apply to

an independent contractor of the board and to an employee of an

independent contractor whose duties substantially involve

consultation relating to licensing, enforcement, development of

law, promulgation of regulations or development of policy

relating to skill gaming under this part:

(1) The person may not, for a period of one year

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following termination of the contract with the board, be

retained by an applicant or a licensed entity or by an

affiliate, intermediary, subsidiary or holding company of an

applicant or a licensed entity.

(2) The person may not, for a period of two years

following termination of the contract with the board, appear

before the board in a hearing or proceeding or participate in

activity on behalf of an applicant, licensee or licensed

entity or on behalf of an affiliate, intermediary, subsidiary

or holding company of an applicant, licensee or licensed

entity.

(3) (i) An applicant or a licensed entity or an

affiliate, intermediary, subsidiary or holding company of

an applicant or a licensed entity may not, until one year

following termination of the contract with the board,

employ or retain the person.

(ii) A knowing violation of this paragraph shall

result in termination of the person's employment and

subject the violator to section 5905(c).

(4) (i) Each contract between the board and an

independent contractor that involves the duties specified

in this subsection shall contain a provision requiring

the independent contractor to sign an affidavit that the

independent contractor will not violate paragraph (1) or

(2).

(ii) If the independent contractor fails to sign the

affidavit, the board may not enter into the contract or

must terminate the contract.

(5) (i) An independent contractor shall require a

prospective employee whose employment would involve the

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duties specified in this subsection to sign an affidavit

that the prospective employee will not violate paragraph

(1) or (2).

(ii) If the prospective employee fails to sign the

affidavit, the independent contractor shall rescind an

offer of employment and may not employ the individual.

be construed to prevent a current or former employee of the

board, a current or former independent contractor or a current

or former employee of an independent contractor from appearing

before the board in a hearing or proceeding as a witness or

testifying as to any fact or information.

(d) State Ethics Commission.--

(1) The State Ethics Commission shall issue a written

determination of whether a person is subject to subsection

(a) or (b) upon the written request of the person or the

person's employer or potential employer. A person that relies

in good faith on a determination issued under this paragraph

shall not be subject to a penalty for an action taken,

provided that all material facts specified in the request for

the determination are correct.

(2) (i) The State Ethics Commission shall publish a

list of all employment positions within the board and

employment positions within independent contractors whose

duties would subject the individuals in those positions

to the provisions of subsections (a) and (b).

(ii) The board and each independent contractor shall

assist the State Ethics Commission in the development of

the list, which shall be compiled by the State Ethics

Commission and transmitted to the Legislative Reference

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Bureau for publication in the next available issue of the

Pennsylvania Bulletin biennially and posted by the board

on the board's publicly accessible Internet website.

(iii) Upon request, employees of the board and each

independent contractor shall provide the State Ethics

Commission with adequate information to accurately

develop and maintain the list.

(iv) The State Ethics Commission may impose a civil

penalty under 65 Pa.C.S. § 1109(f) (relating to

penalties) upon an individual who fails to cooperate with

the State Ethics Commission under this paragraph.

(v) An individual who relies in good faith on the

list published by the State Ethics Commission shall not

be subject to a penalty for a violation of subsection (a)

or (b).

§ 6303. Financial and employment interests.

(a) Financial interests.--Except as may be provided for the

judiciary by rule or order of the Pennsylvania Supreme Court, an

executive-level public employee, public official or party

officer, or an immediate family member thereof, may not

intentionally or knowingly hold a financial interest in an

applicant or a licensee, or in a holding company, affiliate,

intermediary or subsidiary thereof, while the individual is an

executive-level public employee, public official or party

officer and for one year following termination of the

individual's status as an executive-level public employee,

public official or party officer.

(b) Employment.--Except as may be provided by rule or order

of the Pennsylvania Supreme Court and except as provided in

section 1202.1 (relating to code of conduct), 4304 (relating to

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additional restrictions) or 6304 (relating to additional

restrictions), an executive-level public employee, public

official or party officer, or an immediate family member

thereof, may not be employed by an applicant or licensee, or by

a holding company, affiliate, intermediary or subsidiary

thereof, while the individual is an executive-level public

employee, public official or party officer and for one year

following termination of the individual's status as an

executive-level public employee, public official or party

officer.

(1) An executive-level public employee, public official

or party officer, or an immediate family member thereof, may

not solicit or accept a complimentary service from an

applicant or licensee, or from an affiliate, intermediary,

subsidiary or holding company thereof, which the executive-

level public employee, public official or party officer, or

an immediate family member thereof, knows or has reason to

know is other than a service or discount which is offered to

members of the general public in like circumstances.

(2) An applicant or licensee, or an affiliate,

intermediary, subsidiary or holding company thereof, may not

offer or deliver to an executive-level public employee,

public official or party officer, or an immediate family

member thereof, a complimentary service from the applicant or

licensee, or an affiliate, intermediary, subsidiary or

holding company thereof, that the applicant or licensee, or

an affiliate, intermediary, subsidiary or holding company

thereof, knows or has reason to know the service is other

than a service or discount that is offered to members of the

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general public in like circumstances.

(d) Grading.--An individual who violates this section

commits a misdemeanor of the third degree and shall, upon

conviction, be sentenced to pay a fine of not more than $1,000

or to imprisonment for not more than one year, or both.

(e) Divestiture.--

(1) An executive-level public employee, public official

or party officer, or an immediate family member thereof, who

holds a financial interest prohibited by this section shall

divest the financial interest within three months of the

effective date of this section, as applicable.

(2) An executive-level public employee, public official,

party officer or immediate family member shall have 30 days

from the date the individual knew or had reason to know of

the violation or 30 days from the publication on the board's

publicly accessible website under section 5301(b)(10)

(relating to powers of board) of the application or licensure

of the executive-level public employee, public official,

party officer or immediate family member, whichever occurs

earlier, to divest the financial interest.

(3) The State Ethics Commission may, for good cause,

extend the time period under this subsection.

(f) State Ethics Commission.--The State Ethics Commission

shall do all of the following:

(1) (i) Issue a written determination of whether a

person is subject to subsection (a), (b) or (c) upon the

written request of the person or another person that may

have liability for an action taken with respect to the

person.

(ii) A person that relies in good faith on a

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determination made under this paragraph shall not be

subject to penalty for an action taken, provided that all

material facts specified in the request for the

determination are correct.

(2) (i) Publish a list of all State, county, municipal

and other government positions that meet the definitions

of "public official" as defined under subsection (g) or

"executive-level public employee" as defined under

section 5102 (relating to definitions).

(ii) The Office of Administration shall assist the

State Ethics Commission in the development of the list,

which list shall be compiled by the State Ethics

Commission and transmitted to the Legislative Reference

Bureau for publication in the next available issue of the

Pennsylvania Bulletin biennially and posted by the board

on the board's publicly accessible Internet website.

(iii) Upon request, a public official shall provide

the State Ethics Commission with adequate information to

accurately develop and maintain the list.

(iv) The State Ethics Commission may impose a civil

penalty under 65 Pa.C.S. § 1109(f) (relating to

penalties) upon an individual, including a public

official or executive-level public employee, who fails to

cooperate with the State Ethics Commission under this

subsection.

(v) A person that relies in good faith on the list

compiled by the State Ethics Commission shall not be

subject to penalty for a violation of this section.

(g) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

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subsection unless the context clearly indicates otherwise:

"Applicant." A person applying for a manufacturer license or

terminal operator license under this part.

"Financial interest." Owning or holding, or being deemed to

hold, debt or equity securities or other ownership interest or

profits interest. The term does not include a debt or equity

security, or other ownership interest or profits interest, which

is held or deemed to be held in any of the following:

(1) A blind trust over which the executive-level public

employee, public official, party officer or immediate family

member thereof may not exercise any managerial control or

receive income during the tenure of office and the period

under subsection (a). The provisions of this paragraph shall

apply only to blind trusts established prior to the effective

date of this section.

(2) Securities that are held in a pension plan, profit-

sharing plan, individual retirement account, tax-sheltered

annuity, a plan established under 26 U.S.C. § 457 (relating

to deferred compensation plans of State and local governments

and tax-exempt organizations) or a successor provision

deferred compensation plan whether qualified or not qualified

under 26 U.S.C. (relating to Internal Revenue Code) or any

successor provision or other retirement plan that:

(i) is not self-directed by the individual; and

(ii) is advised by an independent investment adviser

who has sole authority to make investment decisions with

respect to contributions made by the individual to these

plans.

(3) A tuition account plan organized and operated under

26 U.S.C. § 529 (relating to qualified tuition programs) that

20250SB0756PN0796 - 172 -

is not self-directed by the individual.

(4) A mutual fund where the interest owned by the mutual

fund in a licensed entity does not constitute a controlling

interest as defined in this part.

"Immediate family." A spouse, minor child or unemancipated

child.

"Licensee." A manufacturer licensee or a terminal operator

licensee.

"Party officer." The term shall include the following:

(1) a member of a national committee;

(2) a chairperson, vice chairperson, secretary,

treasurer or counsel of a State committee or member of the

executive committee of a State committee;

(3) a county chairperson, vice chairperson, counsel,

secretary or treasurer of a county committee in which a

licensee under this part is located; or

(4) a city chairperson, vice chairperson, counsel,

secretary or treasurer of a city committee of a city in which

a licensee under this part is located.

"Public official." The term shall include the following:

(1) The Governor, Lieutenant Governor, a member of the

Governor's Cabinet, State Treasurer, Auditor General and

Attorney General of the Commonwealth.

(2) A member of the Senate or House of Representatives

of the Commonwealth.

(3) An individual elected or appointed to an office of a

county or municipality that directly receives a distribution

of revenue under this part.

(4) An individual elected or appointed to a department,

agency, board, commission, authority or other governmental

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body not included in paragraph (1), (2) or (3) that directly

receives a distribution of revenue under this part.

(5) An individual elected or appointed to a department,

agency, board, commission, authority, county, municipality or

other governmental body not included in paragraph (1), (2) or

(3) with discretionary power that may influence or affect the

outcome of an action or decision and who is involved in the

development of regulation or policy relating to a licensed

entity or is involved in other matters under this part.

§ 6304. Additional restrictions.

(a) Restrictions.--

(1) No individual trooper or employee of the

Pennsylvania State Police or employee of the Office of

Attorney General or the department whose duties substantially

involve licensing or enforcement, the development of laws or

the development or adoption of regulations or policy related

to gaming under this part or who has other discretionary

authority that may affect or influence the outcome of an

action, proceeding or decision under this part may do any of

the following:

(i) Accept employment with or be retained by an

applicant or licensed entity, or an affiliate,

intermediary, subsidiary or holding company of an

applicant or licensed entity, for a period of two years

after the termination of employment.

(ii) (A) Appear before the board in a hearing or

proceeding or participate in other activity on behalf

of an applicant, licensee or licensed entity, or an

affiliate, intermediary, subsidiary or holding

company of an applicant, licensee or licensed entity,

20250SB0756PN0796 - 174 -

for a period of two years after termination of

employment.

(B) Nothing in this paragraph shall be construed

to prevent a current or former trooper or employee of

the Pennsylvania State Police, the Office of Attorney

General or the department from appearing before the

board in a proceeding or hearing as a witness or

testifying as to a fact or information.

(2) As a condition of employment, a potential employee

who would be subject to this subsection shall sign an

affidavit that the individual will not accept employment with

or be retained by an applicant or licensed entity, or an

affiliate, intermediary, subsidiary or holding company of an

applicant or licensed entity, for a period of two years after

the termination of employment.

(b) Employment or retention.--

(1) No applicant or licensed entity or an affiliate,

intermediary, subsidiary or holding company of an applicant

or licensed entity may employ or retain an individual subject

to subsection (a) until the expiration of the period required

in subsection (a)(1)(i).

(2) An applicant or licensed entity, or an affiliate,

intermediary, subsidiary or holding company of an applicant

or licensed entity that knowingly employs or retains an

individual in violation of this subsection, shall terminate

the employment of the individual and be subject to penalty

under section 1518(c) (relating to prohibited acts;

penalties).

refuses or otherwise fails to sign an affidavit, the

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individual's potential employer shall rescind the offer of

employment.

(d) Code of conduct.--

(1) The Pennsylvania State Police, Office of Attorney

General and department each shall adopt a comprehensive code

of conduct that supplements all other requirements under this

part and 65 Pa.C.S. Pt. II (relating to accountability), as

applicable, and shall provide guidelines applicable to

troopers, employees, independent contractors of the agency

whose duties substantially involve licensing or enforcement,

the development of laws or the development or adoption of

regulations or policy related to skill gaming under this part

or who have other discretionary authority that may affect the

outcome of an action, proceeding or decision under this part,

and the immediate families of these individuals to enable

them to avoid a perceived or actual conflict of interest and

to promote public confidence in the integrity and

impartiality of skill gaming enforcement and regulation.

(2) At a minimum, the code of conduct adopted under this

section shall apply the types of restrictions applicable to

members under section 1202.1(c) (relating to code of

conduct), except that the restrictions under section

1202.1(c)(5) shall not apply to an elected Attorney General.

(e) State Ethics Commission.--The State Ethics Commission

shall do all of the following:

(1) (i) Issue a written determination of whether an

individual is subject to subsection (a) upon the written

request of the individual or the individual's employer or

potential employer.

(ii) A person that relies in good faith on a

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determination made under this paragraph shall not be

subject to penalty for an action taken, provided that all

material facts specified in the request for the

determination are correct.

(2) (i) Publish a list of all positions within the

Pennsylvania State Police, the Office of Attorney General

and the department the duties of which would subject the

individuals in those positions to the provisions of

subsection (a).

(ii) Each agency subject to this subsection shall

assist the State Ethics Commission in the development of

the list, which list shall be compiled by the State

Ethics Commission and transmitted to the Legislative

Reference Bureau for publication in the next available

issue of the Pennsylvania Bulletin biennially and shall

be posted by the board on the board's publicly accessible

Internet website and shall be posted by each agency on

the agency's publicly accessible Internet website.

(iii) Upon request by the State Ethics Commission,

members and employees of each agency subject to this

subsection shall provide the State Ethics Commission with

adequate information to accurately develop and maintain

the list.

(iv) The State Ethics Commission may impose a civil

penalty under 65 Pa.C.S. § 1109(f) (relating to

penalties) upon an individual who fails to cooperate with

the State Ethics Commission under this subsection.

(v) A person who relies in good faith on the list

published by the State Ethics Commission shall not be

subject to penalty for a violation of subsection (a).

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CHAPTER 65

MISCELLANEOUS PROVISIONS

Sec.

6501. Funding.

6502. Declaration of exemption from Federal laws prohibiting

skill gaming terminals.

6503. Preemption of local taxes and license fees.

6504. Exclusive jurisdiction of Supreme Court.

§ 6501. Funding.

(a) Appropriation.--The General Assembly appropriates the

following:

(1) The sum of $5,000,000 is appropriated from the

General Fund to the board for the fiscal period July 1, 2025,

to June 30, 2026, to implement and administer the provisions

of this part.

(2) The sum of $3,000,000 is appropriated from the

General Fund to the department for the fiscal period July 1,

2025, to June 30, 2026, to prepare for, implement and

administer the provisions of this part.

(3) The sum of $2,000,000 is appropriated from the

General Fund to the Pennsylvania State Police for the fiscal

period July 1, 2025, to June 30, 2026, to prepare for,

implement and administer the provisions of this part.

(b) Repayment required.--The money appropriated under this

section shall be repaid to the General Fund by establishment

licensees according to subsection (c).

the board authorizes the first skill gaming terminal to be

connected to the central control computer system and is made

available for public use, the department shall collect an

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assessment of .05% of gross terminal revenue on a bimonthly

basis from each terminal operator licensee for deposit into the

General Fund. The department shall continue to collect the

assessment until the amounts under subsection (a) are repaid to

the General Fund.

(d) Unused amounts.--On July 1, 2026, any portion of amounts

appropriated under this section that are unexpended,

unencumbered or uncommitted as of June 30 of the prior fiscal

year shall automatically be transferred to the General Fund.

§ 6502. Declaration of exemption from Federal laws prohibiting

skill gaming terminals.

(a) Declaration.--Under 15 U.S.C. Ch. 24 (relating to

transportation of gambling devices), the Commonwealth declares

that it is exempt from 15 U.S.C. § 1172 (relating to

transportation of gambling devices as unlawful; exceptions;

authority of Federal Trade Commission).

(b) Legal shipments.--All shipments of gambling devices, as

defined in 15 U.S.C. § 1171 (relating to definitions), into this

Commonwealth, the registering, recording and labeling of which

has been effected by the manufacturer licensee of those devices

in accordance with 15 U.S.C. §§ 1173 (relating to registration

of manufacturers and dealers) and 1174 (relating to labeling and

marking of shipping packages), shall be deemed legal shipments

of gambling devices into this Commonwealth.

§ 6503. Preemption of local taxes and license fees.

(a) Statutes.--Skill gaming terminals shall be exempt from

taxes levied under the following:

(1) The act of August 5, 1932 (Sp.Sess., P.L.45, No.45),

referred to as the Sterling Act.

(2) The act of December 31, 1965 (P.L.1257, No.511),

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known as The Local Tax Enabling Act.

(3) 53 Pa.C.S. Pt. III Subpt. E (relating to home rule

and optional plan government).

(4) Any statute that confers taxing authority to a

political subdivision.

(b) Licensing fees.--Skill gaming terminals are exempt from

local licensing fees.

§ 6504. Exclusive jurisdiction of Supreme Court.

The Pennsylvania Supreme Court shall have exclusive

jurisdiction to hear a challenge to or to render a declaratory

judgment concerning the constitutionality of this part. The

Pennsylvania Supreme Court may take such action as it deems

appropriate, consistent with the Pennsylvania Supreme Court

retaining jurisdiction over the matter, to find facts or to

expedite a final judgment in connection with a challenge or

request for declaratory relief.

Section 33. Section 5513(a) introductory paragraph and (1)

and (e.1) of Title 18 are amended and subsection (f) is amended

by adding a definition to read:

§ 5513. Gambling devices, gambling, etc.

(a) Offense defined.--A person is guilty of a misdemeanor of

the first degree if [he] the person:

(1) intentionally or knowingly makes, assembles, sets

up, maintains, sells, lends, leases, gives away, or offers

for sale, loan, lease or gift, any [punch board, drawing

card, slot machine or any device to be used for gambling

purposes, except playing cards] illegal gambling device;

* * *

[(e.1) Construction.--Nothing in this section shall be

construed to prohibit any activity that is lawfully conducted

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under any of the following:

(1) The act of August 26, 1971 (P.L.351, No.91), known

as the State Lottery Law.

(2) The act of July 10, 1981 (P.L.214, No.67), known as

the Bingo Law.

(3) The act of December 19, 1988 (P.L.1262, No.156),

known as the Local Option Small Games of Chance Act.

(4) 4 Pa.C.S. (relating to amusements).]

(f) Definitions.--The following words and phrases when used

in this section shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

* * *

"Illegal gambling device." A mechanical, computerized or

electrical contrivance, terminal, machine or other device that,

upon insertion or payment of cash or cash equivalent, is

available to play or operate one or more games, the outcome of

which game is determined by any element of chance. The term

includes a website, program, software or mobile device

application that offers the player the ability to play a game

with the outcome being determined by any element of chance. The

term shall not include any activity that is lawfully conducted

under any of the following:

(1) The act of August 26, 1971 (P.L.351, No.91), known

as the State Lottery Law.

(2) The act of July 10, 1981 (P.L.214, No.67), known as

the Bingo Law.

(3) The act of December 19, 1988 (P.L.1262, No.156),

known as the Local Option Small Games of Chance Act.

(4) 4 Pa.C.S. (relating to amusements).

* * *

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Section 34. Section 5803(a) of Title 42 is amended by adding

a paragraph to read:

§ 5803. Asset forfeiture.

(a) Applicability.--Notwithstanding any law to the contrary,

this section shall apply to forfeitures conducted under the

following:

* * *

(1.1) 4 Pa.C.S. § 5905 (relating to prohibited acts and

penalties).

* * *

Section 35. Repeals are as follows:

(1) The General Assembly declares that the repeal under

paragraph (2) is necessary to effectuate this act.

(2) Sections 2501 and 2502 and the phrase "the tax

imposed under section 2502 and" in section 2502.1 of the act

of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code

of 1971, are repealed.

Section 36. The following shall apply:

(1) The Attorney General or a district attorney may not

prosecute a violation under 4 Pa.C.S. Pt. IV:

(i) Committed less than 300 days after the effective

date of this section by a person that, at the time of the

violation, had an application pending before the Gaming

Control Board.

(ii) Committed less than 450 days after the

effective date of this section by a person that is a

lottery licensee.

(2) The Attorney General or a district attorney may not

prosecute a violation under the amendment of 18 Pa.C.S. §

5513(a)(1) or (e.1):

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(i) Committed less than 300 days from the effective

date of this section by a person that, at the time of the

violation, had an application pending before the Gaming

Control Board.

(ii) Committed less than 450 days after the

effective date of this section by a person that is a

lottery licensee.

Section 37. This act shall take effect July 1, 2025.

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